Problem
Bayou Sans Espoir, LA, has been experiencing a mini-recession because of the significant decline in crude oil prices and cuts in state subsidies to its crawfish packing plant. As a result of falling oil prices, the oil companies operating in Bayou Sans Espoir have reduced investment spending in the area by $8 mil; Cajun Crawfish, the largest crawfish packing operation, has reduced local investment by $500,000.
Bayou Sans Espoir is experiencing hard times. The local unemployment rate has risen to 5% points above the full employment level after the cuts to investment spending and transfer payments to residents. If local GDP was $506 mil before those changes, by how much, in dollar figures, would local GDP now have to increase to reach the full employment level?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.