If equilibrium national income is 3500 billion while the, Ask an Expert

Economics

If equilibrium national income is 3,500 billion while the national income and output (GDP) necessary for full employment is 3,900 billion (assuming an MPC of 0.6) then

a) What is the size of the GDP gap?

b) What size change in government spending would eliminate the GDP gap?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91341183

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