Using the table below, answer the following questions. The numbers in the table are in billions of dollars.
a.What is the equilibrium level of real GDP?
b.What is the MPC?
c.If potential GDP is $4 000, is the economy at full employment? If not, what is the condition of the economy?
d.If the economy is not at full employment, by how much should government spending increase so that the economy can move to the full employment level of GDP?
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Definitions:
Normative Social Influence
A type of social influence that leads to conformity, where an individual changes their behavior in order to be accepted or liked by a group.
Distortion
The alteration of the original shape or other characteristic of something, often in a way that makes it appear misleading or unrealistic.
Perceptual
Perceptual relates to the ability to interpret or become aware of something through the senses.
Informational
Pertaining to or providing information.
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