If Equilibrium GDP Is $500 Billion Greater Than Full Employment

question 254

Short Answer

If equilibrium GDP is $500 billion greater than full employment GDP and there is an inflationary gap of $250 billion,how much is the multiplier?

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Definitions:

Confidence Level

Confidence level indicates the probability that a population parameter will fall between two set values for a certain proportion of times.

Confidence Interval

An array of values, derived from observations of a sample, which is believed to enclose the value of a mystery parameter in the population.

Mean

The arithmetic average of a set of numbers, calculated by dividing the sum of the numbers by the count of numbers.

Confidence Interval

A confidence interval is a range of values derived from sample statistics that is likely to contain the value of an unknown population parameter, with a specified level of confidence.