Question
You are given the following information about aggregate demand at the existing price level for an economy: (1) consumption = $500 billion (2) investment =
You are given the following information about aggregate demand at the existing price level for an economy:
(1) consumption = $500 billion
(2) investment = $50 billion
(3) government purchases = $10 billion
(4) exports = $20 billion and
(5) imports = $40 billion.
If the full-employment level of GDP for this economy is $620 billion, then what combination of actions would be most consistent with closing the GDP-gap here?
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Step: 1
Answer To close the GDP gap and reach the fullemployment level of GDP we need to increase aggregate ...
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Principles of Macroeconomics
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster
12th edition
134078802, 978-0134078809
