In the above table and figure, supposed that there is no import or proportional tax. To pull the economy back to the long-run equilibrium, the government can conduct a balanced budget operation by spending $ trillion. 1) 1 2) 2 3) 4 4) 8
In the above table and figure, supposed that there is no import or proportional tax. To pull the economy back to the long-run equilibrium, the government can conduct a balanced budget operation by spending $ trillion. 1) 1 2) 2 3) 4 4) 8
Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp
Section: Chapter Questions
Problem 1WNG
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In the above table and figure, supposed that there is no import or proportional tax. To pull the economy back to the long-run equilibrium, the government can conduct a balanced budget operation by spending $ trillion.
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Transcribed Image Text:Real GDP
(dollars)
10
20
30
40
50
60
Consumption
expenditure (dollars)
22.5
30
37.5
45
52.5
60
Transcribed Image Text:Price level (GDP deflator, 2000 = 100)
160
150
140
130
120
0
4
LAS
AD
SAS
8
12
16 20 24
Real GDP (trillions of 2000 dollars)
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