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If investment increases by $10 billion and the economy's MPC is 0.8, the aggregate
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- The aggregate demand curve will change if investment rises by $15 billion and the MPC for the economy is 0.8.If the MPC in the economy is 0.75, the government could shift the aggregate demand curve rightward by $30 billion by cutting taxes by $10 billion. True FalseIf the MPC in an economy is .8, government could shift the aggregate demand curve rightward by $100 billion by: increasing government spending by $25 billion. increasing government spending by $80 billion. decreasing taxes by $25 billion. decreasing taxes by $100 billion.
- If the MPC in an economy is .8, the increase in real GDP can occur (aggregate demand curve can shift rightward) by $100 billion by doing which of the following: Group of answer choices increasing government spending by $80 billion. increasing government spending by $25 billion. increasing government spending by $20 billion increasing taxes by $25 billion.Which of the following will cause the planned aggregate expenditure function to shift down? Group of answer choices A rise in the marginal propensity to consume. A rise in the marginal propensity to save. A rise in interest rate. A rise in government transfer payments.If the MPC in an economy is 0.75, government could shift the aggregate demand curve leftward by $30 billion by
- Calculate the total change in aggregate spending if investment decreases by $250 billion and the marginal propensity to consume is 0.9. Instructions: Enter your response as a whole number. Aggregate demand decreases by $ ________billion.If planned aggregate spending rises by $10 billion and the marginal propensity to consume is 0.75, then equilibrium real GDP changes by:If the MPC in an economy is 0.6, government could shift the aggregate demand curve rightward by $30 billion by Multiple Choice decreasing taxes by $20 billion. increasing government spending by $20 billion. increasing government spending by $18 billion. decreasing taxes by $30 billion.
- If the MPC in an economy is 0.80, government could shift the aggregate demand curve leftward by $48 billion by Multiple Choice *increasing taxes by $12 billion *Reducing government expenditures by $4 billion *Increasing taxes by $9.6 billion *reducing government expenditures by $48 billion.The marginal propensity to consume (mpc) is 0.8. In addition, government spending increases by $200 billion and lump sum taxes fall by $100 billion. What is the total change in the equilibrium real GDP, if the price level is fixed in the short run?If investment increases by $50 billion, by how much will aggregate demand change? Aggregate demand will _______. A. increase by less than $50 billion because there will be fewer goods and services produced for consumption expenditure B. increase by more than $50 billion because the increase in aggregate income induces an increase in consumption expenditure C. probably decrease by $50 billion, but it depends on the change in aggregate supply D. increase by exactly $50 billion because investment is a component of aggregate demand