Suppose that real GDP is currently $ 97 billion per year and natural real GDP is currently $ 100 billion . The GDP gap in percent equals to

The establishment of an income tax, ceteris paribus, will result in

Suppose that real GDP is currently $ 97 billion per year and natural real GDP is currently $ 100 billion,

AND uppose that natural real GDP is growing by $ 4 billion per year. By how must real GDP have risen after two years to close the GDP gapRequired to answer. Single choice.

Consider the economy in which all taxes are autonomous and the following values of autonomous consumption Ca =$1400, planned investment Ip = $ 1800 , government expenditure G = $ 1950 . autonomous taxes Ta = 1750 and marginal propensity to consume c = 0.6

What is the level of consumption when the level of income (Y) equals to $ 10000?

Assume that a country produces only two goods, automobiles and fast PCs . In year 1. Automobiles cost $ 20000 each and fast PCs cost $ 3000 each, 1000 automobiles and 10000 PCs are produced. In year 2, the price of automobiles has increased to $ 22000, the price of PCs has fallen to $ 700. In year 2 , 1000 automobiles and 15000 PCs are produced , calculate nominal GDP in year 2