ECONOMICS CHAPTER 29
3.The magnitude of the drop in real GDP that will occur when aggregate expenditures fall depends on the
4.A recessionary expenditure gap is the amount by which aggregate expenditures at the full employment
5.A depression abroad will tend to ____________ our exports, which in turn will ____________ net exports, which in turn will ____________ equilibrium real GDP.
6.Shown below is the aggregate expenditures model composed of consumption and investment spending for a closed economy. Show the effect of a $500 addition in government spending.Instructions:Click and drag on the expenditure line to move it to the correct position given the $500 additio Looking at your graph, determine whether equilibrium GDP has increased, decreased, or stayed the same given the size of the government purchases that you selected.Equilibrium GDP has INCREASED by _750$ in government spending.7.The economy’s current level of equilibrium GDP is $780 billion. The full-employment level of GDP is $800 billion. The multiplier is 4. Given those facts, we know that the economy faces RECESSIONARY expenditure gap of 5 BILLION