Answer the following questions, which relate to the aggregate expenditures model: Instructions: Enter your answer as a whole number. a. If Ca is $130, Ig is $60, Xnis -$10, and G is $40, what is the economy's equilibrium GDP? b. If real GDP in an economy is currently $250, Ca is $130, Ig is $60, Xn is -$10, and G is $40, will the economy's real GDP rise, fall, or stay the same? (Click to select) c. Suppose that full-employment (and full-capacity) output in an economy is $250. If Ca is $180, Ig is $60, Xn is -$10, and Gis $40, what will be the macroeconomic result? O There will be an inflationary expenditure gap and employment levels will be above the full-employment level. O There will be an inflationary expenditure gap and employment levels will be below the full-employment level.

Answer the following questions, which relate to the aggregate expenditures model: Instructions: Enter your answer as a whole number. a. If Ca is $130, Ig is $60, Xnis -$10, and G is $40, what is the economy's equilibrium GDP? b. If real GDP in an economy is currently $250, Ca is $130, Ig is $60, Xn is -$10, and G is $40, will the economy's real GDP rise, fall, or stay the same? (Click to select) c. Suppose that full-employment (and full-capacity) output in an economy is $250. If Ca is $180, Ig is $60, Xn is -$10, and Gis $40, what will be the macroeconomic result? O There will be an inflationary expenditure gap and employment levels will be above the full-employment level. O There will be an inflationary expenditure gap and employment levels will be below the full-employment level.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section11.B: Algebraic Treatment Of Taxes And Fiscal Policy

Problem 1TY

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