1. Calculate GDP loss and government expenditure needed to eliminate this loss if full employment GDP is $400, unemployment rate 8.9%, and the MPC is 0.8.
2. Calculate MPC, MPS and the Multiplier if consumption expenditure increases by $3,150 as a result of increase in income from $40,000 to $44,200.
3. Assume that initially G is $80 and equilibrium real GDP is $5000. If the multiplier is 4, what would be the new equilibrium level of GDP if G increase to $200.