a If potential GDP (LAS) is $530, and the economy is presently in equilibrium, then there...

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a If potential GDP (LAS) is $530, and the economy is presently in equilibrium, then there is a(n) recessionary gap of $ billion b. In order to close this gap aggregate demand must increase by $ billion. Cif every $1 change in government spending leads to a $4 change in aggregate demand, government spending must increase by $ bilion d. Suppose that initially government had a balanced budget If government increases its spending as in part (c) and tax revenues are 02 of real GDP, what will be the government's real budget surplus/deficit at full employment equilibrium? The government budget would have a (Click to select) of $ billion The Economy of Morin 170 150 - 130- 110 90 70 460 480 500 520 540 560 580 600 Real GDP Price Level a If potential GDP (LAS) is $530, and the economy is presently in equilibrium, then there is a(n) recessionary gap of $ billion b. In order to close this gap aggregate demand must increase by $ billion. Cif every $1 change in government spending leads to a $4 change in aggregate demand, government spending must increase by $ bilion d. Suppose that initially government had a balanced budget If government increases its spending as in part (c) and tax revenues are 02 of real GDP, what will be the government's real budget surplus/deficit at full employment equilibrium? The government budget would have a (Click to select) of $ billion The Economy of Morin 170 150 - 130- 110 90 70 460 480 500 520 540 560 580 600 Real GDP Price Level

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Athere would be recessionary gap because Potential GDP Current ... View the full answer