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The following macroeconomic data are from country D's economy. Dollar values are measured in billions dollars. Consumption $300 Investments $75 Exports $35 Imports $40 Government

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The following macroeconomic data are from country D's economy. Dollar values are measured in billions dollars. Consumption $300 Investments $75 Exports $35 Imports $40 Government spending $50 Taxes $20 Potential real output $500 A. Calculate the current level of GDP. Is the economy facing a recessionary gap, an inflationary gap, or neither? Explain using numbers. B. Based on your answer to part (a), how will the economy adjust in the long run in the absence of any government policy action? Explain

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