If equilibrium GDP is $500 billion greater than full employment GDP and the multiplier is 2.5,there is an inflationary gap of
A) $100 billion.
B) $200 billion.
C) $250 billion.
D) $500 billion.
E) This is impossible to find with the information given.
Correct Answer:
Verified
Q12: Over the last four decades we have
Q13: We have an inflationary gap when
A)equilibrium GDP
Q14: If full employment GDP is $500 billion
Q15: The national debt passed the $2 trillion
Q16: Which statement is true about fiscal policy?
A)There
Q18: If we passed a constitutional amendment requiring
Q19: There is a recessionary gap when
A)equilibrium GDP
Q20: Fiscal policy deals with each of the
Q21: Which statement is true?
A)When there is a
Q22: Fiscal policy includes each of the following
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