Table 12-14 -Refer to Table 12-14.Using the Table Above,answer the Following Questions.The

question 145

Essay

Table 12-14

-Refer to Table 12-14.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 $4,000 billion,is the economy at full employment? If not,what is the condition of the economy?
d.Refer to part c.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:

Guaranty Contract

A legal agreement wherein a guarantor agrees to fulfill the obligations of a debtor to a lender, should the debtor fail to do so.

Creditor

An entity (person or institution) that lends money or extends credit to another entity, with the expectation of being repaid in the future.

Debtor's Debt

Debtor's debt refers to the monetary obligation owed by a debtor to a creditor, resulting from a loan or another credit agreement.

Real Property

Land and anything permanently attached to it, such as buildings and structures.