4. Consider the following model of the economy: = co + CYD. T to +ty, and Үр Y-T G and I are both constant. (a) Is t, greater than or less than one? Explain. (b) Solve for the equilibrium output. (c) What is the multiplier? Does the economy respond more to changes in autonomous spending when t, is zero or when t, is positive? Explain.
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