Reference no: EM13209354
Money Money INTEREST Investment at Interest Potential Real GDP Actual Real GDP at Interest
Supply Demand RATE (Rate Shown) (Rate Shown)
$500 $800 4% $70 $350 $390
500 700 5 60 350 370
500 600 6 50 350 350
500 500 7 40 350 330
500 400 8 30 350 310
What is the equilibrium interest rate in Moola? %
What is the level of investment at the equilibrium interest rate? $
Is there either a recessionary output gap (negative GDP gap) or an inflationary output gap (positive GDP gap) at the equilibrium interest rate and, if either, what is the amount?
There is a recessionary output OR gap inflationary output gap of $? billion.
Given money demand, by how much would the Moola central bank need to change the money supply in order to close the output gap?
Increase OR Decrease the money supply by $?
What is the (expenditure) multiplier in Moola?
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What is the equilibrium interest rate in moola
: Is there either a recessionary output gap (negative GDP gap) or an inflationary output gap (positive GDP gap) at the equilibrium interest rate and, if either, what is the amount There is a recessionary output OR gap inflationary output gap of $.
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