Suppose that real gdp is currently $ 13.8 trillion and potential real gdp is $ 14.0 trillion, or a gap of $ 200 billion. the government purchases, multiplier is 5.0, and the tax multiplier is 4.0

holding other factors constant, by how much will government purchases need to be increased to bring the economy to equilibrium at potential gdp?

1.government spending will need to be increased by $ billion (enter your response rounded to the nearest whole number).

2. holding other factors constant, by how much will taxes have to be cut to bring the economy to equilibrium at potential gdp?

taxes will need to be cut by $ billion (enter your response rounded to the nearest whole number).

Powell company began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. during 2018, powell experienced the following events: sold merchandise costing $58,000 for $99,500 on account to prentise furniture store. delivered the goods to prentise under terms fob destination. freight costs were $900 cash. received returned goods from prentise. the goods cost powell $4,000 and were sold to prentise for $5,900. granted prentise a $3,000 allowance for damaged goods that prentise agreed to keep. collected partial payment of $81,000 cash from accounts receivable. required record the events in a statements model shown below. prepare an income statement, a balance sheet, and a statement of cash flows. why would prentise agree to keep the damaged goods?