17. Suppose MPC = 0.6, and G increases by $350 and Tax increases by $350 simultaneously. How much would GDP change? (NOTE: Refer to your answers from #14 & #15) 18. Suppose MPC = 0.8, and the government intends to increase GDP by $300. To achieve the goal, tax must ( increase decrease )by $

17. Suppose MPC = 0.6, and G increases by $350 and Tax increases by $350 simultaneously. How much would GDP change? (NOTE: Refer to your answers from #14 & #15) 18. Suppose MPC = 0.8, and the government intends to increase GDP by $300. To achieve the goal, tax must ( increase decrease )by $

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter10: Income And Expenditures Equilibrium

Section: Chapter Questions

Problem 14E

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Question

17. Suppose MPC = 0.6, and G increases by $350 and Tax increases by $350 simultaneously. How much
would GDP change? (NOTE: Refer to your answers from #14 & #15)
18. Suppose MPC = 0.8, and the government intends to increase GDP by $300. To achieve the goal, tax
must (increase
decrease ) by $

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