QUESTION 6Refer to the table. If the full-employment real GDP is $100, the:Consumption (aftertaxes)$-20Real GDPGovernmentPurchases$15Gross InvestmentNet Exports$0$10$+51010+515402010+515704010+5156080100inflationary expenditure gap is $30.10010+51513010+51516010+515inflationary expenditure gap is $10.recessionary expenditure gap is $30.recessionary expenditure gap is $10.O hyper recessionary expenditure gap is $100.O O O C

The ‘inflation gap’ measures the difference between the ‘current level of real GDP’ and the…

QUESTION 6 Refer to the table. If the full-employment real GDP is $100, the: Consumption (after taxes) $-20 Real GDP Government Purchases Gross Investment Net Exports $10 10 $0 $45 $15 10 +5 15 40 20 10 +5 15 40 60 70 10 +5 15 100 10 +5 15 80 130 160 O inflationary expenditure gap is $30. O inflationary expenditure gap is $10. 10 100 +5 15 10 +5 15 recessionary expenditure gan in f00

QUESTION 6 Refer to the table. If the full-employment real GDP is $100, the: Consumption (after taxes) $-20 Real GDP Government Purchases Gross Investment Net Exports $10 10 $0 $45 $15 10 +5 15 40 20 10 +5 15 40 60 70 10 +5 15 100 10 +5 15 80 130 160 O inflationary expenditure gap is $30. O inflationary expenditure gap is $10. 10 100 +5 15 10 +5 15 recessionary expenditure gan in f00

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 4.8P

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