Suppose that real GDP is currently $21.8 trillion and potential real GDP is $22.2 trillion, or a gap of $400 billion. Th

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Suppose That Real Gdp Is Currently 21 8 Trillion And Potential Real Gdp Is 22 2 Trillion Or A Gap Of 400 Billion Th 1 (106.84 KiB) Viewed 13 times

Suppose that real GDP is currently $21.8 trillion and potential real GDP is $22.2 trillion, or a gap of $400 billion. The government purchases multiplier is 10.0, the tax multiplier is -9.0, and the transfers multiplier is 9.0. Holding other factors constant, by how much will government purchases need to be increased to bring the economy to equilibrium at potential GDP? Government spending will need to be increased by $ billion. (Enter your response rounded to the nearest whole number.) Holding other factors constant, by how much will taxes have to be cut to bring the economy to equilibrium at potential GDP? Taxes will need to be cut by $ billion. (Enter your response rounded to the nearest whole number.) Holding other factors constant, by how much will transfer payments have to increase to bring the economy to equilibrium at potential GDP? Transfer payments will need to increase by $ billion. (Enter your response rounded to the nearest whole number.)