a. How much does aggregate demand need to increase to restore the economy to its long-run equilibrium? %$4 billion b. If the MPC is 0.6, how much does government purchases need to increase to shift aggregate demand by the amount you found in part a? $ billion Suppose instead that the MPC is 0.95. c. How much does aggregate demand and government purchases need to increase to restore the economy to its long-run equilibrium? billion. billion and government purchases need to increase by $ Aggregate demand needs to increase by $
a. How much does aggregate demand need to increase to restore the economy to its long-run equilibrium? %$4 billion b. If the MPC is 0.6, how much does government purchases need to increase to shift aggregate demand by the amount you found in part a? $ billion Suppose instead that the MPC is 0.95. c. How much does aggregate demand and government purchases need to increase to restore the economy to its long-run equilibrium? billion. billion and government purchases need to increase by $ Aggregate demand needs to increase by $
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter18: Debates In Macroeconomics Over The Role And Effects Of Government
Section18.10: Demand-side And Supply Side Views Of The Economy And Government Tools For The Changing Real Gdp
Problem 3ST
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