Business, 11.08.2021 14:00 manuellopez1981

Suppose that real GDP is equal to $136.2 billion and potential GDP is equal to $137.3 billion. The government purchases multiplier is 3.0. a. Is this economy in a recession or in expansion? Write the explanation in the text box below.
b. Holding other factors constant, by how much will government purchases need to be increased to bring the economy to equilibrium at potential GDP? Enter the answer in the answer field.

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Suppose that real GDP is equal to $136.2 billion and potential GDP is equal to $137.3 billion. The g...

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