(1) (2) (3) Possible levels Real Domestic Output Aggregate Expenditures f Employment (billions) (C +1 + G) (millions) (billions 9 $500 $520 10 550 560 11 600 600 12 650 640 13 700 680 a) If full employment in this economy is 13 million, will there be an inflationary or a recessionary expenditure gap? (2 marks) b) What will be the consequence of this gap? (2 marks) c) By how much would aggregate expenditures in column 3 have to change at each level of GDP to eliminate the inflationary or the recessionary gap? (2 marks) d) What are the sizes of the marginal propensity to consume (MPC)? the marginal propensity to save (MPS)? (2 marks) e) What is the size of the multiplier in this example? (2 marks) LABEL AND TYPE YOUR ANSWERS CLEARLY IN THE SPACE BELOW