Assume that full-employment gdp is pound500 billion and
Assume that full-employment GDP is £500 billion and that current GDP is £450 billion. Assume also that the mpcd is 4/5.
(a) Is there an inflationary or deflationary gap?
(b) What is the size of this gap?
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assume that full-employment gdp is pound500 billion and that current gdp is pound450 billion assume also that the
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