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The economy of Morin is shown in the gure below. The Economy of Morin 170 150 130 Price Level 110 90 m a} 460 480

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The economy of Morin is shown in the gure below. The Economy of Morin 170 150 130 Price Level 110 90 m a} 460 480 500 520 540 560 530 600 Real GDP a. If potential GDP [LAS] is $550, and the economy is presently in equilibrium, then there is a(n) b. In order to close this gap aggregate demand must increase by $ billion. (Click to select) V gap of$ billion. c. If everyr $1 change in government spending leads to a $4 change in aggregate demand, government spending must increase by $ billion. d. Suppose that initially government had a balanced budget. If government increases its spending as in part (c) and tax revenues are 0.25 of real GDP, what will be the government's real budget surplusfdecit at fullemployment equilibrium

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