Real GDP Consumption Planned Investment Government Purchases Net Exports $5,000 $4,500 $500 $325 -125 6,000 5,300 $500 $325 -125 7,000 6,100 $500 $325 -125 8,000 6,900 $500 $325 -125 3 A Answer the questions based on the table below. The values are in millions of dollars. What is the equilibrium level of real GDP? What is the MPC? If potential GDP is $7,000 million, is the economy at full employment? If not, what is the condition of the economy? If the economy is not at full employment, by how much should government spending increase so that the economy can move to the full employment level of GDP?
Real GDP Consumption Planned Investment Government Purchases Net Exports $5,000 $4,500 $500 $325 -125 6,000 5,300 $500 $325 -125 7,000 6,100 $500 $325 -125 8,000 6,900 $500 $325 -125 3 A Answer the questions based on the table below. The values are in millions of dollars. What is the equilibrium level of real GDP? What is the MPC? If potential GDP is $7,000 million, is the economy at full employment? If not, what is the condition of the economy? If the economy is not at full employment, by how much should government spending increase so that the economy can move to the full employment level of GDP?
Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?
Section9.A: The Simple Algebra Of Income Determination And The Multiplier
Problem 4TY
Related questions
Question
Real GDP |
Consumption |
Planned Investment |
Government Purchases |
Net Exports |
$5,000 |
$4,500 |
$500 |
$325 |
-125 |
6,000 |
5,300 |
$500 |
$325 |
-125 |
7,000 |
6,100 |
$500 |
$325 |
-125 |
8,000 |
6,900 |
$500 |
$325 |
-125 |
3 A Answer the questions based on the table below. The values are in millions of dollars.
- What is the equilibrium level of real GDP?
- What is the MPC?
- If potential GDP is $7,000 million, is the economy at full employment? If not, what is the condition of the economy?
- If the economy is not at full employment, by how much should government spending increase so that the economy can move to the full employment level of GDP?
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