C = $300 billion + 0.75 YD I = $300 billion Use this information to complete this

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C = $300 billion + 0.75 YD

I = $300 billion

Use this information to complete this problem:

Identify the equilibrium rate of output (or GDP) .

If full-employment GDP equals $2500 billion ,what kind of Gap will develop (recessionary or Inflationary ) ? Explain clearly.

How much is the gap ?

What is the value of the multiplier?

What would happen to equilibrium GDP if the rate of investment increased to $350 from current $300 billion per year?

What will happen to Equilibrium GDP if Govt. takes a stimulus plan by increasing its spending by $50 billion ?

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Statistics

ISBN: 9781119254515

11th Edition

Authors: Robert S. Witte, John S. Witte

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Posted Date: Feb 06, 2024 02:18 AM

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C = $300 billion + 0.75 YD I = $300 billion Use this information to complete this

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To identify the equilibrium rate of output or GDP we need to set the total spending aggregate demand equal to the total output real GDP In this case t... View the full answer

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