Question: GNP Gap problem Assume: C = $300B TR1 = 15% I = $300B G = $250B Yf = $2,500B X = $100B M = -0.1Yd

GNP Gap problem

Assume: C = $300B TR1 = 15%

I = $300B

G = $250B Yf = $2,500B

X = $100B

M = -0.1Yd

If my math is correct, the GNP gap is $1,462 billion.

What is the Classical/Republican Policy to deal with the GNP gap in terms of tax rate?

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