Use the following macroeconomic model to answer the questions from 1 through 11: C = 115 + 0.75Yd; C = consumption function; Yd (Y-T) = disposable income I = 150; I = Investment G = 200; G = Government expenditure T = 100; T = Tax revenue X = 40; X = Export M = 30; M = Import Also assume that Yf = Full employment GDP (Potential GDP) = 2,000

7. Given the value of full employment level of GDP above, the GDP gap is ______

8. The government spending needed to bridge the GDP gap you found in statement 7 above would be __________

9. If the export value increases to 60 due to decrease in the value of US $, other things staying the same, then the answer to Question 1 would be ----

10. In addition to increase of export value in statement 9 above, if the import value decreases to 20 for the same reason, other things remaining the same, then the answer to Question 1 would be ----

11. In statement 8 above, the GDP gap and recessionary gap are respectively ____and___