Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

21. Given the following macroeconomic data of a hypothetic economy: C = 175 + 0.75(DI) 1 - 50 G - 35 X - 30 M

image text in transcribed
21. Given the following macroeconomic data of a hypothetic economy: C = 175 + 0.75(DI) 1 - 50 G - 35 X - 30 M - 45 T - 35 Compute the equilibrium GDP of this hypothetic economy. O none of the answers given is correct O $850 O $950 O $900 O $925 Question 22 22. Using the macroeconomic data in #21 above and assuming a full employment economic output of $800. The economy's is experiencing a/an ____ GDP gap; and that the government should ___ (increase or decrease) spending of ____ to close up such gap. O inflationary ; decrease ; $300 O recessionary ; increase ; $18.75 O recessionary ; increase ; $300 O cannot be computed based on information provided O inflationary ; decrease ; $18.75

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Society, Economy, Religion And Festivals Of Tiwas In Assam

Authors: Bandana Baruah

1st Edition

9351288633, 9789351288633

More Books

Students also viewed these Economics questions

Question

What is meant by a green or sustainable strategy?

Answered: 1 week ago