Answer as quickly as possible.

Consider a closed economy, where wages are sticky in the short run. The consumption function is C = (:0 + (:1 (Y T), where the marginal propensity to consume c1 is equal to 0.9. Initially the economy is in equilibrium at Y = Y* and P = P8, where P'3 is the price level that was expected when agents agreed their xed nominal wage contracts. The short-run aggregate supply curve (SEAS) is horizontal. Suddenly the government increases government spending G by $400. For the following questions, if you think a variable goes up by (say) $50, just enter 50 as your answer. If you think a variable goes down by $50, enter -50 as your answer. If you think a variable doesn't change at all, enter 0 as your answer. 10. 11. 12. 13. 14. 15. By how much will output Y change in the short run? By how much will consumption 0 change in the short run? By how much will investment I change in the short run? By how much will output Y change in the long run, after wage contracts are renegotiated? By how much will consumption 0 change in the long run, after wage contracts are renegotiated'? By how much will investment I change in the long run, after wage contracts are renegotiated