Identify the equilibrium rate of output

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Reference no: EM131159479

C = $200 billion + 0.8 YD

I = $200 billion

Use this information to complete this problem

Identify the equilibrium rate of output (or GDP) .

If full-employment GDP equals $2500 billion ,what kind of Gap will develop (recessionary or Inflationary ) ? Explain clearly.

How much is the gap ?

What is the value of the multiplier?

What would happen to equilibrium GDP if the rate of investment increased to $250 from current $200 billion per year?

If net exports go up by $50 billion what would happen to Equilibrium GDP?

Reference no: EM131159479

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