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help me on this The present level of the exports of La La Land is $5 billion; investment is $3 billion; gov- ernment expenditure is

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The present level of the exports of La La Land is $5 billion; investment is $3 billion; gov- ernment expenditure is $6 billion; total consumer spending is $20 billion; imports are $7 billion; and expenditure taxes are $1 billion. The economy is currently in equilibrium. It is estimated that an income of $30 billion is necessary to generate full employment. The marginal propensity to save mps is 0.15, the marginal propensity to tax mp, is 0.25 and the marginal propensity to purchase imports mpm is 0.1. (a) By setting out your calculations, show whether there is an inflationary or deflationary gap in this situation. (b) What is the size of the gap? (0) If the decision has been taken to increase or decrease government expenditure rather than increasing or decreasing taxes, what would be the appropriate govern- ment policy to close this gap (ie what amount should there be of any increase or decrease in government expenditure)? (d) Describe the TWO main causes of inflation and, with the aid of appropriate diagrams, explain how they occur in the short and long term

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