1. consider an economy in which autonomous consumption is 800, the marginal propensity to consume is 0.8, investment is 400, government spending is 500, taxation is 400, and net exports are 100.

a. what is the equilibrium gdp in this economy? show your work.

b. what is the savings at this level of gdp? show your work.

c. what are the spending and tax multipliers? show your work.

d. if government spending increases by 200, what is the new equilibrium gdp and what is the increase over the original equilibrium gdp? show your work.

e. if the government increases both spending and taxation by 200, what is the new equilibrium gdp and what is the increase over the original equilibrium gdp? show your work.

Circuittown commenced a gift card program in january 2018 and sold $12,150 of gift cards in january, $19,150 in february, and $18,100 in march of 2018 before discontinuing further gift card sales. during 2018, gift card redemptions were $7,850 for the january gift cards sold, $4,350 for the february cards, and $4,250 for the march cards. circuittown considers gift cards to be “broken” (not redeemable) 10 months after sale. required: 1. how much revenue will circuittown recognize with respect to january gift card sales during 2018? 2. prepare journal entries to record the sale of january gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) of gift cards. 3. how much revenue will circuittown recognize with respect to march gift card sales during 2018? 4. what liability for deferred revenue associated with gift card sales would circuittown show as of december 31, 2018?