For the following economy, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap. By how much would autonomous expenditure have to change to eliminate the output gap?


C = 4,000 + 0.75 (Y − T )
Ip = 2,000
G = 3,500
NX = 100
T = 3,000
Y* = 29,000


Instructions: Enter your responses as whole numbers.

Autonomous expenditure:
5600


Multiplier:
4


Short-run equilibrium output:
29000


Output gap:
0


Autonomous expenditure would need to
decrease
by
.5
to eliminate the output gap.