I’ll say it’s A
But I think it’s C
It’s gonna be either A or C
The answer to this answer is B.lower spending
Lower spending means that the government used less money to be allocated into the government programs (such as welfares, infrastructure, etc)
By doing this, the government will have larger chunk of the budget at the end of the fiscal year, which cause a budget surplus for the governemnt
Aggregate demand will REMAIN THE SAME. Aggregate demand refers to the total demand for goods and services within a particular market in an economy. Social security, medicare and welfare programs are examples of government transfer payments; transfer payments are not meant to be purchased, therefore they have no influence whatsoever on aggregate demand.
<span>Community
</span><span>Sourcing/ Supply Chains
</span><span>Workplace/ Employee Health and Safety
</span><span>Environment/ Sustainability</span>
Answer:
GDP gap = -2 %
GDP gap = 2%
Explanation:
given data
potential output = 100 trillion
natural rate unemployment = 4 percent
solution
we know as per the Okun's law
the GDP gap will be = -2% ( for every 1% )
the actual unemployment rate exceeds its natural rate
so here if actual unemployment rate = 5 %
GDP gap will be
GDP = ( 5% - 4% ) × -2
GDP gap = -2 %
and
when actual unemployment rate = 3%
so GDP will be
GDP gap = ( 3% - 4% ) × -2
GDP gap = 2%
