5. Briefly explain whether you agree or disagree with the following statement: "Real GDPis currently $17.2 trillion, and potential GDP is $17.4 trillion. If the president would liketo increase the government purchases by $200 billion or cut taxes by $200 billion, theeconomy could be brought to equilibrium at potential GDP."6. In 2012, an executive at Honda Motor Company announced that the firm would bemoving more of its car production from Japan to the United States. A newspaper articlestated: "The move, driven by the strength of the Japanese yen, will also result in Hondasignificantly reduce the number of vehicles it imports into North America from plants inJapan."a. What does the article mean by the strength of the Japanese yen?b.Why would a strong yen case Honda to produce more cars in the United States andfewer cars in Japan?FocusAccessibility: Investigateسماء..

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5. Briefly explain whether you agree or disagree with the following statement: "Real GDP is currently $17.2 trillion, and potential GDP is $17.4 trillion. If the president would like to increase the government purchases by $200 billion or cut taxes by $200 billion, the economy could be brought to equilibrium at potential GDP."

5. Briefly explain whether you agree or disagree with the following statement: "Real GDP is currently $17.2 trillion, and potential GDP is $17.4 trillion. If the president would like to increase the government purchases by $200 billion or cut taxes by $200 billion, the economy could be brought to equilibrium at potential GDP."

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section9.A: The Simple Algebra Of Income Determination And The Multiplier

Problem 4TY

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