If full employment GDP is $1 trillion greater than the equilibrium GDP and the multiplier is 5, how much is the deflationary gap?

What will be an ideal response?

1000/5 = $200 billion

Economics

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Which of the following is NOT included in the monetary aggregate M2?

A) currency B) savings bonds C) traveler's checks D) checking deposits

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Which of the following would shift the demand curve for the normal good regular vanilla ice cream to the left?

a. reports of health risks as a result of eating vanilla ice cream b. an increase in the price of frozen yogurt c. a decrease in the price of hot fudge sauce d. an increase in the price of regular vanilla ice cream e. an increase in buyers' incomes

Economics