This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The GDP gap is the difference between: a. full-employment real GDP and real GDP chain price index. ... (Read 45 times)

DelorasTo

  • Hero Member
  • *****
  • Posts: 548
on: Jun 30, 2018
The GDP gap is the difference between:
 a. full-employment real GDP and real GDP chain price index.
  b. unemployment rate and real GDP chain price index.
  c. actual real GDP and full-employment real GDP.
  d. frictional unemployment and actual real GDP.

Question 2

If no fiscal policy changes are made, suppose the current aggregate demand curve will increase horizontally by 1,000 billion and cause inflation. If the marginal propensity to consume is 0.75, federal policymakers could follow Keynesian economics and restrain inflation by decreasing:
 a. government spending by 250 billion.
  b. taxes by 100 billion.
  c. taxes by 1,000 billion.
  d. government spending by 1,000 billion.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

triiciiaa

  • Sr. Member
  • ****
  • Posts: 349
Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

a


DelorasTo

  • Member
  • Posts: 548
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

CAPTAINAMERICA

  • Member
  • Posts: 325
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

Brachial Plexus drawing plus the difference in the forearm Brachial Plexus drawing plus the difference in the forearm
Feathers in Full Feathers in Full
Use a full hand/flat of fingers to apply L stroke to face, below the eye and to the edge of the ... Use a full hand/flat of fingers to apply L stroke to face, below the eye and to the edge of the ...
Full-term Fetus Full-term Fetus
E9-23 Prepare income statements Explain the difference in operating income E9-23 Prepare income statements Explain the difference in operating income
The profit, p(t), made at a fair depends on the price of the ticket, t. The profit is modelled ... The profit, p(t), made at a fair depends on the price of the ticket, t. The profit is modelled ...
Video: Cell mediated immune response to a viral infection Animation

For a complete list of videos, visit our video library