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6. When there is a decrease in HH Wealth due to a decline in the stock market, what is the impact on the Consumption Function?
6. When there is a decrease in HH Wealth due to a decline in the stock market, what is the impact on the Consumption Function? _(increase, decrease) and does the curve shift up or down? 7. In the Recessionary Gap, What is the relationship between Real GDP and Potential Output? What type of unemployment exists in this gap? 8. If the Recessionary Gap is equal to $108 bill, by how much will the government (increase, decrease) taxes to close the gap? 9. If the Inflationary Gap is equal to $75 billion, by how much will the government _( increase, decrease) government spending to close the gap? 10. What does Potential Output represent in an economy
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