the questions are listed below

Refer to the accompanying table in answering the questions that follow: (1} Possible Levels of (2) Real Donstic '33 \"53"?\" EMF?\" ('0 + Euplay-ent, Millions Output, Billions 1g + In + 5). 3111mm $426 Instructions: In parts ac, enter your answers for the multiplier as a whole number. In part c, round your answers for the MPC and MP5 to'l decimal place. a. If full employment in this economy is 170 million, will there be an inflationary expenditure gap or a recessionary expenditure gap? Recessionaryr expenditure gap V What will be the consequence ofthis gap? Ashortfall in aggregate expenditures of $20 billion. V By how much would aggregate expenditL res in column 3 have to change at each level of GDP to eliminate the gap? Aggregate expenditures would have to increase V by $ 20 billion. What is the multiplier in this example? 1.25 b. Will there be an inationary expenditure gap or a recessionary expenditure gap if the fullemployment level of output is $400 billion? Inflationary expenditure gap V 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 decrease V by $ billion. What is the multiplier in this example? 1.25 (3. Assuming that investment, net exports, and government expenditures do not change with changes in real GDP, what are the sizes of the MPC, the MP8, and the multiplier? MPC = 0.2 MPS = 0.8 Multiplier = 1.25