Use the following information to answer the next question.   C = A + .75(Y – T)   A = $900   I = $600   G = $400   T = $400   NX = -$200   If the full-employment level of real GDP is $6,000, at the equilibrium level of real GDP, there is ________.   Multiple Choice an inflationary output gap of $100 a recessionary expenditure gap of $400 an inflationary output gap of $400 a recessionary expenditure gap of $100

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A: The Marginal Propensity to Consume (MPC) represents the fraction of an additional unit of income…

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Q: Suppose the marginal propensity to consume (MPC) is either 0.75, 0.96, or 0.62.   a. For each…

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Q: Suppose real GDP is at 1,500, which of these will occur? Planned $4,000 Supply 45-degree line…

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Q: Potential 450 GDP - C+l+G+X=IM) F 4,000 5,000 6,000 Real GDP (billions of dollars per year) In…

A: Answer to the question is as follows :

Q: Which of the following statements is correct? Multiple Choice 1. An increase in exports will tend to…

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Q: If income level of the economy is at 50, how big an increase in autonomous expenditures is necessary…

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Q: supply-side economics

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Q: 7) Refer to Figure 2-2. If the U.S. economy is currently at point N, which of the following could…

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Q: a. What is the new equilibrium level of real output? 400 billion b. How large is the real GDP gap?…

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Q: All of the following are likely to be effective at eliminating a recessionary gap except one. Which…

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Q: (trillions of dollars) 45 AE Real GDP, Y (trillions of dollars) (aggregate income-aggregate output)

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Q: 16. Consider a closed economy with demand for goods as follows: • yd = C +I+ G C = 200 + 0.80(Y – T)…

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Q: An economy experiences an MPC of 0.75. Interest rates rise in the economy causing initial change(s)…

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Q: Figure 8.2 TE 45 TE=C+I+G+(X-IM) In Figure 8.2, all of the following is true, except: O at full…

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Q: . What is the equilibrium rate of real GDP?        $  __ billion   b. If full-employment real…

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Q: Refer to Figure 22-2. What is the marginal propensity to spend (z) in this economy? Select one: O A.…

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Q: 6. Macroeconomic equilibrium and the ranges of the aggregate supply curve The following graph shows…

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