The figure given below depicts macroeconomic equilibrium in a closed economy.Assume that the spending multiplier in this economy is 1.5. Figure 10.5 Refer to Figure 10.5.Assume that there is a recessionary gap that can be closed by a $500 increase in planned aggregate expenditures.If the economy is initially in equilibrium with a real GDP level of $900, then the target or potential level of real GDP must be:

Question

The figure given below depicts macroeconomic equilibrium in a closed economy.Assume that the spending multiplier in this economy is 1.5. Figure 10.5  Refer to Figure 10.5.Assume that there is a recessionary gap that can be closed by a $500 increase in planned aggregate expenditures.If the economy is initially in equilibrium with a real GDP level of $900, then the target or potential level of real GDP must be:

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The Answer of The figure given below depicts macroeconomic equilibrium in a closed economy.Assume that the spending multiplier in this economy is 1.5. Figure 10.5  Refer to Figure 10.5.Assume that there is a recessionary gap that can be closed by a $500 increase in planned aggregate expenditures.If the economy is initially in equilibrium with a real GDP level of $900, then the target or potential level of real GDP must be:

The Figure Given Below Depicts Macroeconomic Equilibrium in a Closed