If planned aggregate expenditure (PAE) in an economy equals 2,000 + 0.5Y and potential output (Y*) equals 4,400,government purchases must ________ to eliminate any output gap.
A) increase by 20
B) increase by 200
C) increase by 250
D) decrease by 200
E) decrease by 250
Correct Answer:
Verified
Q143: In the basic Keynesian model,to close an
Q144: In the basic Keynesian model,to close a
Q145: In the basic Keynesian model where the
Q146: In the basic Keynesian model where the
Q147: In the basic Keynesian model where the
Q149: In the basic Keynesian model where the
Q150: In the basic Keynesian model where the
Q151: Changes in government purchases affect planned aggregate
Q152: Changes in taxes and transfer payments affect
Q153: If planned aggregate expenditure (PAE)in an economy
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents