If WFP(PMA)=.25 The GDP (PIB) balance is $6 trillion and the potential GDP is $6.5 trillion, which is as follows:

 

1. What kind of gap exists and why
2. What type of fiscal policy is applied, and what does this fiscal policy consist of?
3. How the public expenditure multiplier is calculated
4. Determine how much expenses should change to eliminate the gap, what are the calculations
5. How the tax multiplier is calculated
6. Determine how much taxes should change to close the gap

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Surelets analyze the scenario you described Given WFPPMA 025 Full Employment Potential Multiplier GD... View the full answer