Real GDP 0 10 40 70 100 130 160 Consumption (after taxes) $-20 20 40 60 80 100 Gres investment $10 10 10 10 10 10 10 E Net experts 8.5 +5 +5 45 +5 -5 Government purchases $15 15 7. Refer to the above table. If the full-employment real GDP is $70 the 15 15 15 15 15 A) A. inflationary expenditure gap is $30. OB) B. recessionary and inflationary expenditure gaps are both $0. OC) C. inflationary expenditure gap is $10. OD) D. recessionary expenditure gap is $10.
Real GDP 0 10 40 70 100 130 160 Consumption (after taxes) $-20 20 40 60 80 100 Gres investment $10 10 10 10 10 10 10 E Net experts 8.5 +5 +5 45 +5 -5 Government purchases $15 15 7. Refer to the above table. If the full-employment real GDP is $70 the 15 15 15 15 15 A) A. inflationary expenditure gap is $30. OB) B. recessionary and inflationary expenditure gaps are both $0. OC) C. inflationary expenditure gap is $10. OD) D. recessionary expenditure gap is $10.
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 4.8P
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