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Economics

Question: Use the information in the following table to answer the following questions.

Draw a graph by using the numbers from the above table. Carefully label the two axes, the 45-degree line (potential GDP), the AE curve, and the equilibrium level of real GDP. If the potential real GDP is $750, and the economy is in a recession. Show the GDP gap and recessionary gap in the graph.

Y	C	I	G	X
$100	$120	$20	$30	-$10
$300	$300	$20	$30	-$10
$500	$480	$20	$30	-$30
$700	$660	$20	$30	-$50

a) What is the value of autonomous consumption?

FOR B & C (if the potential real GDP is $750)

b) What is the GDP gap?

c) What is the recessionary gap?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92587020

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