f the current real GDP is P700 billion, which of the following policies would bring the economy to potential output? a. increase government spending by P25 billion b. increase government spending by P100 billion c. increase government spending by P20 billion d. decrease government spending by P100 billion. The tax multiplier is: a. -0.8 b. -1.25 c. -5 d. -4
f the current real GDP is P700 billion, which of the following policies would bring the economy to potential output? a. increase government spending by P25 billion b. increase government spending by P100 billion c. increase government spending by P20 billion d. decrease government spending by P100 billion. The tax multiplier is: a. -0.8 b. -1.25 c. -5 d. -4
Chapter9: The Keynesian Model In Action
Section: Chapter Questions
Problem 14SQ
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If the current real GDP is P700 billion, which of the following policies would bring the economy to potential output?
a. increase government spending by P25 billion
b. increase government spending by P100 billion
c. increase government spending by P20 billion
d. decrease government spending by P100 billion.
The tax multiplier is:
a. -0.8
b. -1.25
c. -5
d. -4
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