Question: Solve it and make it clear for me. 11. Suppose in the model of Exercise 10, R = 50 and full employment income is 500.

Solve it and make it clear for me.

Solve it and make it clear for me. 11. Suppose in the

11. Suppose in the model of Exercise 10, R = 50 and full employment income is 500. (i) Is there any unemployment at equilibrium output? (ii) What is the structural budget deficit? (iii) What would be the structural budget deficit if investment were to increase from 50 to 100? Is there any unemployment now? (iv) What policies could the government take to reduce the effect of an increase in investment demand

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