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Output Income 400 450 500 550 600 650 700 Consumption 200 225 250 275 300...

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Output Income 400 450 500 550 600 650 700 Consumption 200 225 250 275 300 325 350 Investment 150 150 150 150 150 150 150 Gov Spending 50 50 50 50 50 50 50 a What is the equilibrium level of output income b Suppose that government spending increase from 50 to 100 at each level of income What will happen to the equilibrium level of output income c Continued from the previous question b Given that Yf full employment level of output 500 describe the current economy Is there any inflation or unemployment issue

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