Assume the following to answer the following questions: C= 1000+ .9 (Y-T) Tax rate = 0.1Y Imports = 0.1(Y-T) Government spending = 200 Investment = 300 Exports = 600 Potential Output = $8000 Question 1 Question 2 What is the current GDP in this economy? Show your work. The economy described above is in th [Select] the AD/AS Model. recessionary inflationary gap of Question 3 8 pts By how much must government spending increase or decrease to close this gap and bring the economy to Potential Output? Show your work