Use the following equations for a closed (no XNET) economy to the next four items. C=$300 billion +0.75(YD) I= $450 billion 27. 28. 29. In equilibrium, output and income will equal will equal billion. a. b. C. d. C. $3,200; $3,000 $3,200; $2,400 $3,000; $2,400 $3,000; $3,200 If full-employment (natural) real GDP in this economy is equal to $3,500 billion, then: the economy is at full-employment equilibrium. a. b. a recessionary gap exists. an inflationary gap exists. this economy can never achieve full employment. d. G=$200 billion T=$200 billion billion, and disposable income If full-employment real GDP in this economy is $3,500 billion, how much of an increase in government spending would be necessary to achieve equilibrium at full employment, given the simplifying assumptions of the Keynesian model?
Use the following equations for a closed (no XNET) economy to the next four items. C=$300 billion +0.75(YD) I= $450 billion 27. 28. 29. In equilibrium, output and income will equal will equal billion. a. b. C. d. C. $3,200; $3,000 $3,200; $2,400 $3,000; $2,400 $3,000; $3,200 If full-employment (natural) real GDP in this economy is equal to $3,500 billion, then: the economy is at full-employment equilibrium. a. b. a recessionary gap exists. an inflationary gap exists. this economy can never achieve full employment. d. G=$200 billion T=$200 billion billion, and disposable income If full-employment real GDP in this economy is $3,500 billion, how much of an increase in government spending would be necessary to achieve equilibrium at full employment, given the simplifying assumptions of the Keynesian model?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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How do I find #27? It’s a practice exam and I don’t remember going over it.
Transcribed Image Text:20pdf%20Practice%20Exam%202.pdf
27.
28.
29.
Use the following equations for a closed (no XNET) economy to the next four items.
C=$300 billion +0.75(YD)
I= $450 billion
In equilibrium, output and income will equal
will equal
billion.
a.
b.
C.
d.
6/8
C.
d.
1
$3,200; $3,000
$3,200; $2,400
$3,000; $2,400
$3,000; $3,200
100%
+ | @
G=$200 billion T= $200 billion
billion, and disposable income
If full-employment (natural) real GDP in this economy is equal to $3,500 billion, then:
the economy is at full-employment equilibrium.
a.
b.
a recessionary gap exists.
an inflationary gap exists.
this economy can never achieve full employment.
If full-employment real GDP in this economy is $3,500 billion, how much of an increase
in government spending would be necessary to achieve equilibrium at full employment,
given the simplifying assumptions of the Keynesian model?
a.
$300 billion
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