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olivegnu327Lv1
18 Aug 2020
Assume that a hypothetical economy with an MPC of 0.9 is experiencing a severe recession.
a. by how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion___correct billion.
How large would a tax-cut be needed to achieve the same increase in aggregate demand?
b. Determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt.
Increase government spending by____correct billion.
Increase taxes by____correct billion.
Assume that a hypothetical economy with an MPC of 0.9 is experiencing a severe recession.
a. by how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion___correct billion.
How large would a tax-cut be needed to achieve the same increase in aggregate demand?
b. Determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt.
Increase government spending by____correct billion.
Increase taxes by____correct billion.
Alice SejakeLv10
7 Oct 2020
