If the MPC in an economy is 0.75, government could shift the aggregate demand curve leftward by $60 billion by Multiple Choice increasing taxes by $20 billion. reducing government expenditures by $12 billion. increasing taxes by $15 billion.
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If the MPC in an economy is 0.75, government could shift the aggregate demand curve leftward by $60 billion by
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increasing taxes by $20 billion.
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reducing government expenditures by $12 billion.
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increasing taxes by $15 billion.
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reducing government expenditures by $60 billion.
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- if the MPC in an economy is .80 government could shift the aggregate demand curve leftward by $48 billion by A. increasing taxes by $12 billion B. reducing government expenditures by $4 billion C. increasing taxes by $9.6 billion D reducing government expenditures by $48 billionIf the MPC in an economy is .6, the government could shift the aggregate demand curve to the right by $50 billion by: reducing worthless government expenditures by $125 billion. reducing worthless government expenditures by $20 billion. increasing taxes by $50 billion. increasing worthless government expenditures by $20 billion. None of the available are correctIf 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.
- 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.Suppose the MPC = 0.8 and the government increases spending by P100 billion, financing this spending with a P100 billion tax increase. Which of the following will be the likely effect of this action? a. Real GDP will expand by P100 billion b. Real GDP will contract by P100 billion c. Real GDP will expand by P500 billion d. Real GDP will expand by P400 billionGiven an MPC of .8 and an increase in government spending of 5 The aggregate supply curve will shift to the right by 20 The aggregate supply curve will shift to the left by 20 The aggregate supply curve will shift to the right by 5 The aggregate supply curve will shift to the left by 5 None of the above
- If the MPC in an economy is 0.75, government could shift the aggregate demand curve leftward by $60 billion by:( please explain as well ) A) reducing government expenditures by $12 billion. B) reducing government expenditures by $60 billion. C) increasing taxes by $15 billion. D) increasing taxes by $20 billion.If the MPS in an economy is 0.25, government could shift the aggregate demand curve leftward by $60 billion by Multiple Choice reducing government expenditures by $15 billion. reducing government expenditures by $240 billion. increasing taxes by $60 billion.Suppose the MPC is 0.85. If government purchases increase by $10 billion and net taxes fall by $10 billion, equilibrium output will a)increase by $10 billion b)increase by $66.7 billion c)increase by $123.3 billion d)increase by $20 billion e)fall by $10 billion
- If the MPS in an economy is .2 government could shift the aggregate demand curve leftward by $20 billion by A. reducing government expenditures by $4 billion B. reducing government expenditures by $100 billion C increasing taxes by $20 billion D. increasing taxes by $200 billionAssume that an economy with an MPC of 0.8 is experiencing a recessionary gap of $25 billion. The government has decided to intervene in the economy by using fiscal policy to fight the recession. By how much would government spending have to change to bring about a total change in aggregate demand of $25 billion? Show your work.Suppose the government reduces taxes by $20 billion and that there is no crowding-out effect and the MPC is .75 then the total effect of the tax cut on aggregate demand is a) 50 billion b) 60 billion c) 70 billion d) 80 billion
