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C = $300 billion + 0.75 YD I = $300 billion Use this information to complete this problem: Identify the equilibrium rate of output (or
C = $300 billion + 0.75 YD
I = $300 billion
Use this information to complete this problem:
Identify the equilibrium rate of output (or GDP) .
If full-employment GDP equals $2500 billion ,what kind of Gap will develop (recessionary or Inflationary ) ? Explain clearly.
How much is the gap ?
What is the value of the multiplier?
What would happen to equilibrium GDP if the rate of investment increased to $350 from current $300 billion per year?
What will happen to Equilibrium GDP if Govt. takes a stimulus plan by increasing its spending by $50 billion ?
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Step: 1
To identify the equilibrium rate of output or GDP we need to set the total spending aggregate demand equal to the total output real GDP In this case t...
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Statistics
Authors: Robert S. Witte, John S. Witte
11th Edition
1119254515, 978-1119254515
