Answer Happy

Real GDP supplied Short run Long run (dollars (dollars) Real GDP GDP deflator demanded (dollars) 100 700 110 600 120 500 130 400 300 400 500 600 600 600 600 600 2) The table above gives the aggregate demand (AD) and aggregate supply (AS) schedules. The short-run macroeconomic equilibrium is a price level of and a real GDP of A) 130; $400 B) 100; $400 C) 120; $500 D) 110: 5400 31) The table above gives the aggregate demand and aggregate supply schedules. In short-run equilibrium, there is A) a recessionary gap of $200 B) an inflationary gap of $200 C) an inflationary gap of $100 D) a recessionary gap of $100 32) Suppose that the real GDP is less than potential GDP. Which of the following fiscal policies would you advice to increase real GDP? A) only an increase in taxes B) an increase in government expenditure and/or a decrease taxes a decrease in government expenditure and/or an increase taxes D) only a decrease in government expenditure V Component Personal income taxes Social Security taxes Corporate income taxes Indirect taxes Transfer payments Expenditure on goods and services Dollars (billion) 500 400 150 75 1,200 225 33) The table above has data for a country's government budget. The data show the government is running a billion (Use: Savings = Tax Revenue - Transfers - Government Expenditure). A) budget deficit of $300 B) budget surplus of $150 C) budget deficit of $150 D) budget surplus of $300 Government Government Year tax revenues expenditures (billions of (billions of dollars) dollars) 1 240 240 2 250 245 260 255 4 300 320 5 325 340 3 34) What is the amount of the surplus or deficit incurred in year 5 by the government shown in the above table? (Assume there are no government transfers) A) $15 billion deficit B) $35 billion surplus C) $325 billion surplus D) $5 billion surplus