Question: Suppose that the economy is depicted by the following relationship Expenditures = C +1 + G + X where: C = $100 + 0.80 (Y

Suppose that the economy is depicted by the following relationship Expenditures = C +1 + G + X where: C = $100 + 0.80 (Y - T) G = $ 500 T = $ 500 1 = $ 300 X = $ 250 The economy is in equilibrium at a level of real GDP or income of $ (Round your answer to the nearest dollar.) Now suppose that the government decides to increase government spending by $50. What is the new equilibrium level of GDP or income? $ (Round your answer to the nearest dollar.)

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