Calculate gdp loss if equilibrium level of gdp is 10000


Calculate GDP loss if equilibrium level of GDP is $10,000, unemployment rate 8.8%, and the MPC is 0.75.

a) How much money should the government spend to eliminate this GDP loss?

b) Calculate the tax cut needed to eliminate this GDP loss.

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Business Economics: Calculate gdp loss if equilibrium level of gdp is 10000
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