suppose real gdp is 13.2 and potential real gdp is 14.0 with a gap of $800 billion. The government purchases multiplier is 5.0, and the tax multiplier is 4.0. how much will government purchases need to be increased to bring the economy to equilibrium at potential gdp?

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answer: 8 years

step-by-step explanation:

the explanation is that in 8 years the child will be 20 and in 8 years the father will be 40 and 20 is half of 40.

ending amount = beginning amount / (2^n)

where "n" = number of half-lives (or elapsed time / half-life)

ending amount = 50 mg / (2 ^10 / 5.3)

ending amount = 50 mg / (2 ^ 1.8867924528)

ending amount = 50 m / 3.6981210597

ending amount = 13.5203794557 mg

or about 13.5 mg remain

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