State what fiscal policy you would recommend to eliminate the inflationary or recessionary gap in the following

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State what fiscal policy you would recommend to eliminate the inflationary or recessionary gap in the following scenarios:
a. Recessionary gap of $800; mpe = .5.
b. Inflationary gap of $1,500; mpe = .8.
c. Real GDP = $10,200; potential GDP = $9,000; mpe = .2.
d. Real GDP = $40,500; potential GDP = $42,000; mpe = .7.
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Macroeconomics

ISBN: 978-0077307110

8th edition

Authors: David Colander

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