Table 10.1 $$\begin{array} { | l | l | } \hline \text { Consurmpticn } & C = \$ 1.0 + 0.75 \mathrm { YD } \ \hline \text { Irvestmernt } & = \$ 1.9 \ \hline \text { Goverument purchases } & = \$ 2 \ \hline \text { Net exports } & = - \$ 0.5 \ \hline \text { Taxes } & = \$ 0 \ \hline \text { Goverument trarssfer } & \ \text { gayments } & = \$ 0 \end{array}$$ (all values are in billions of dollars) -Refer to Table 10.1.Suppose that all of the information given in the table remains the same except that taxes equal $0.5 billion.If potential GDP equals $17 billion,by how much would government purchases have to change for equilibrium GDP to equal potential GDP?

Question

Quizplus · Accepted Answer

The Answer of Table 10.1 $$\begin{array} { | l | l | } \hline \text { Consurmpticn } & C = \$ 1.0 + 0.75 \mathrm { YD } \ \hline \text { Irvestmernt } & = \$ 1.9 \ \hline \text { Goverument purchases } & = \$ 2 \ \hline \text { Net exports } & = - \$ 0.5 \ \hline \text { Taxes } & = \$ 0 \ \hline \text { Goverument trarssfer } & \ \text { gayments } & = \$ 0 \end{array}$$ (all values are in billions of dollars) -Refer to Table 10.1.Suppose that all of the information given in the table remains the same except that taxes equal $0.5 billion.If potential GDP equals $17 billion,by how much would government purchases have to change for equilibrium GDP to equal potential GDP?

Table 101 (All Values Are in Billions of Dollars) -Refer to Table

Table 101 (All Values Are in Billions of Dollars)
-Refer to Table