4. In the 1960's the U.S economy faced inflationary pressures. Assume that in 1968 there was an AD Excess of $190 billion. Assume the MPC-95 (All the following problems require mathematical calculations.) a. What change in government expenditures would you have recommended?

4. In the 1960's the U.S economy faced inflationary pressures. Assume that in 1968 there was an AD Excess of $190 billion. Assume the MPC-95 (All the following problems require mathematical calculations.) a. What change in government expenditures would you have recommended?

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section: Chapter Questions

Problem 4TY

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Fiscal Policy
A closer Look at Fiscal Policy
4. In the 1960's the U.S economy faced inflationary pressures. Assume that in 1968 there
was an AD Excess of $190 billion. Assume the MPC-95 (All the following problems require
mathematical calculations.)
a. What change in government expenditures would you have recommended?

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