Consider an open economy with a current population of 0.55 million people, and where the potential GDP is $3.24 billion. Consumer expenditure is represented by the following equation: C = 60+ 0.75DI. Exports are constant at $500 million, and investors want to spend $400 million at every level of income. The government purchases are $300 million, imports are constant at $450 million, and taxes are $200 million. (Question 3 of 12) Is there any gap at the current level of GDP? (complete the following sentence) Currently, there is ✓ gap.

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Consider an open economy with a current population of 0.55 million people, and where the potential GDP is $3.24 billion. Consumer expenditure is represented by the following equation: C = 60+ 0.75DI. Exports are constant at
$500 million, and investors want to spend $400 million at every level of income. The government purchases are $300 million, imports are constant at $450 million, and taxes are $200 million.
(Question 3 of 12)
Is there any gap at the current level of GDP? (complete the following sentence)
Currently, there is
✓ gap.
Transcribed Image Text:Consider an open economy with a current population of 0.55 million people, and where the potential GDP is $3.24 billion. Consumer expenditure is represented by the following equation: C = 60+ 0.75DI. Exports are constant at $500 million, and investors want to spend $400 million at every level of income. The government purchases are $300 million, imports are constant at $450 million, and taxes are $200 million. (Question 3 of 12) Is there any gap at the current level of GDP? (complete the following sentence) Currently, there is ✓ gap.
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