Suppose That the Current Equilibrium GDP Is $14

question 208

Essay

Suppose that the current equilibrium GDP is $14.5 trillion and that potential GDP is $14.3 trillion.Will decreasing government purchases by $200 billion,or raising taxes by $200 billion,restore the economy to potential GDP? Explain.

---

Definitions:

Power Distance Cultures

Cultural norms that accept and expect inequality in power among individuals, influencing social behavior and organizational practices.

Silent Authority

Influence exerted through implied power or status without the explicit use of words or commands.

Assertiveness

The quality of being self-assured and confident without being aggressive, enabling individuals to express their thoughts and feelings in a respectful and direct manner.

Non-substitutability

A characteristic of resources in an organization that cannot be replaced with an alternative without incurring a significant loss or decrease in performance.