Calculate the level of saving in $ billion at the equilibrium position.
Explain the central features of the Keynesian income-expenditure ‘multiplier’ model as a theory of the determination of output in less than 100 words.
Suppose full-employment output is $3200 billion and you are a fiscal policy advisor to the Federal government. What advice would you give on the necessary amount of government expenditure (given taxes) to achieve full-employment output and show how it would work based on the Keynesian income-expenditure model. What is the outcome on the budget balance of your policy recommendation?