Table 12-12
-Refer to Table 12-12.Using the table above,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 $7,000 billion,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?
Definitions:
Decrease Price
A pricing strategy where a company reduces the cost at which an item is sold in order to stimulate demand or gain competitive advantage.
Price-cost Margins
The difference between the selling price of a product and its cost of production, often expressed as a percentage.
Wine Merger
The combining of two or more companies engaged in the wine industry, aiming to increase market share, efficiency, or geographic reach.
Price-cost Margins
The difference between the selling price of a product and its production cost, expressed as a percentage of the selling price.
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