Assume that equilibrium real GDP is $800 Billion, potential real GDP is $900 Billion, the MPC is 0.80, and the MPI is 0.40. What is the size of of the GDP gap?How much must government spending increase to eliminate the GDP gap?
Assume that equilibrium real GDP is $800 Billion, potential real GDP is $900 Billion, the MPC is 0.80, and the MPI is 0.40. What is the size of of the GDP gap?How much must government spending increase to eliminate the GDP gap?