Answer the following questions given the information below.

C_o = 60, G = 330, T = 240, I = 100, X = 60, M = 75, b = mpc = .95 and t =.1, the actual unemployment rate = 3.8%, and the natural unemployment rate is 4.7%.

60. What will be the equilibrium value for Y?

a. $ 1,703.56

b. $ 1,785.64

c. $ 1,908.57

d. $2,211.39

e. $ 2,714.11

61. Assume the same values for the economy given in the prior problem, namely, C_o = 60, G = 330, T = 240, I = 100, X = 60, M = 75, b = mpc = .95 and t =.1, the actual unemployment rate = 3.8%, and the natural unemployment rate is 4.7%.

The value of the G multiplier will be ___________.

a. 5.439

b. 5.892

c. 6.305

d. 6.897

e. 7.253

62. Assume the same values for the economy given in the prior problem, namely, C_o = 60, G = 330, T = 240, I = 100, X = 60, M = 75, b = mpc = .95 and t =.1, the actual unemployment rate = 3.8%, and the natural unemployment rate is 4.7%.

A one dollar increase in G will cause Y to increase by _______ dollars.

a. $5.439

b. $5.892

c. $6.305

d. $6.897

e. $7.253

63. Assume the same values for the economy given in the prior problem, namely, C_o = 60, G = 330, T = 240, I = 100, X = 60, M = 75, b = mpc = .95 and t =.1, the actual unemployment rate = 3.8%, and the natural unemployment rate is 4.7%.

The value of the T multiplier will be ___________.

a. 5.914

b. 6.552

c. 6.779

d. 7.114

e. 7.414

64. Assume the same values for the economy given in the prior problem, namely, C_o = 60, G = 330, T = 240, I = 100, X = 60, M = 75, b = mpc = .95 and t =.1, the actual unemployment rate = 3.8%, and the natural unemployment rate is 4.7%.

A one dollar increase in T will cause Y to decrease by _______ dollars.

a. - $ 5.914

b. - $ 6.552

c. - $ 6.779

d. - $ 7.114.

e. - $ 7.414

65. Assume the same values for the economy given in the prior problem, namely, C_o = 60, G = 330, T = 240, I = 100, X = 60, M = 75, b = mpc = .95 and t =.1, the actual unemployment rate = 3.8%, and the natural unemployment rate is 4.7%.

What is the desired percentage change in the actual unemployment rate?

a. 0.9%

b. 0.7%

c. 0.6%

d. 0.5%

e. 0.4%

66. Given the values in the prior problems, what does Okun's Law tell us to do?

a. decrease Y by 2.6%

b. decrease Y by 2.4%

c. decrease Y by 1.8%

d. decrease Y by 1.0%

e. decrease Y by 0.8%

67. Given the values in the prior problems, in order to achieve full employment, how many dollars must Y decrease?

a. - $ 17.50

b. - $ 19.0

c. - $ 22.59

d. - $ 28.09

e. - $ 30.66

68. Given the values in the prior problems, achieve the desired decrease in Y by using G. The change in G should be $____ ___________.

a. - $ 4.13

b. - $ 4.45

c. - $ 4.88

d. - $ 5.30

e. - $ 5.98

69. Given the values in the prior problems, achieve the desired decrease in Y by using T. The change in T should be $_____.

a. +$ 3.32

b. +$ 3.72

c. +$ 4.26

d. +$ 4.68

e. +$ 5.32