Refer to the accompanying table in answering the questions that follow (1) Possible Levels of Employment, Millions 90 100 110 120 130 (2) Real Domestic Output, Millions $550 600 650 700 750 (Click to select) (3) Aggregate Expenditures (Ca+ Ig+ XnG), Millions $ 570 610 650 690 730 Instructions: In parts a-c, enter your answers for the multiplier as a whole number. In part c, round your answers for the MPC and MPS to 1 decimal place. a. If full employment in this economy is 130 million, will there be an inflationary expenditure gap or a recessionary expenditure gap? (Click to select) What will be the consequence of this gap? (Click to select) By how much would aggregate expenditures in column 3 have to change at each level of GDP to eliminate the gap? Aggregate expenditures would have to (Click to select) by $ What is the multiplier in this example? million. b. Will there be an inflationary expenditure gap or a recessionary expenditure gap if the full-employment level of output is $550 million? By how much would aggregate expenditures in column 3 have to change at each level of GDP to eliminate the gap? Aggregate expenditures would have to [(Click to select) by $ million. What is the multiplier in this example? c. Assuming that investment, net exports, and government expenditures do not change with changes in real GDP, what are the values of the MPC, the MPS, and the multiplier?

Refer to the occompanying table in answering the questions that follow Instructions: In parts a-c, enter your answers for the multiplier as a whole number. In part c, round your answers for the MPC and MPS to 1 decimal place. a. If full employment in this economy is 130 million, will there be an inflationary expenditure gap or a recessionary expenditure gap? What will be the consequence of this gap? By how much would aggregate expenditures in column 3 have to change at each level of GDP to eliminate the gap? Aggregate expenditures would havi to by $ million: What is the multiplier in this example? b. Will there be on inflotionary expenditure gop or a recessionary expenditure gap if the full-employment level of output is $550 milion? By how much would aggregate expenditures in column 3 hove to change at each level of GDP to eliminate the gap? Aggregate expenditures would have to by $ milion. What is the multipliet in this example? c. Assuming that investment, net exports, and qovernment expenditures do not change with changes in real GDP, what are the values c. Assuming that investment, net exports, and government expenditures do not change with changes in real GDP, whot are the values of the MPC, the MPS, and the multiplier? MPC= MPS Muttiptior =