You are given the following information about aggregate demand at the existing price level for an economy: 

(1) consumption = $500 billion

 (2) investment = $50 billion

(3) government purchases = $10 billion

(4) exports = $20 billion and

 (5) imports = $40 billion.

 If the full-employment level of GDP for this economy is $620 billion, then what combination of actions would be most consistent with closing the GDP-gap here?

Answer rating: 100% (QA)

Answer To close the GDP gap and reach the fullemployment level of GDP we need to increase aggregate ... View the full answer