ECON203-LAB4-Q7

ECON203-LAB4-Q7 - Queetlon 7[12 points An elmnorrly is in...

• Lab Report
• 1
• 100% (1) 1 out of 1 people found this document helpful

This preview shows page 1. Sign up to view the full content.

This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Queetlon 7 [12 points] An elmnorrly is in equilibrium at a real GDP of 850. but current estimates put potential oulput atYp E 900. a] Answer the lollowirg ﬁll-in the blank queslion. When Y = 850ande= Soothereis a winery gapandlne sizeoﬂhegap is equalln 50 . b) Answer lhe following ﬁll-in ll1e blank question Neill Keep as much precision as pc3sible during your calculalions. Your ﬁnal answm should be aculralleln atleasllhree decimal places. Research suggesls Inat lhe MP0 is I175, the MPM is 0.1. and the netlax rate is 0.2.Tl1erefure.lhe slope ofAE is 0.5 and the multiplier is 2 which means lhet G must be increased by 25 lo remove the gap and achieve equilibrium. :1 ll lne government preferred In change Ils net lax ralle lo ellminate lne gap, and not change gnvemment expenditure. M31 new lax rale would be required In eliminale the gap? NOIIL Keep as much precnslun as pc33lble during your calwlalions. Your ﬁnal answer should be aculraleln atleasllhree decimal places. Tal rails required lloelirrlinale ll'le gap = 0.163 Marking: (a) Gal: mo Yhur answer was: recessionaryI Congramlatiens! ‘l‘bu have entered ll'le correct answer. ...
View Full Document

• Winter '08
• Islam
• Decimal, 2000 albums, decimal places, ll'le correct answer, new lax rale, Ils net lax

{[ snackBarMessage ]}

What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern