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Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. a. How much does aggregate demand need to change to restore the economy to its long-run equilibrium? $ | billion b. If the MPC is 0.9, how much does government purchases need to change to shift aggregate demand by the amount you found in part a? billion Suppose instead that the MPC is 0.5. c. How much does aggregate demand and government purchases need to change to restore the economy to its long-run equilibrium? Aggregate demand needs to change by $ | billion and government purchases need to change by $ billion,

Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. a. How much does aggregate demand need to change to restore the economy to its long-run equilibrium? $ | billion b. If the MPC is 0.9, how much does government purchases need to change to shift aggregate demand by the amount you found in part a? billion Suppose instead that the MPC is 0.5. c. How much does aggregate demand and government purchases need to change to restore the economy to its long-run equilibrium? Aggregate demand needs to change by $ | billion and government purchases need to change by $ billion,

Economics: Private and Public Choice (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter12: Fiscal Policy, Incentives, And Secondary Effects
Section: Chapter Questions
Problem 13CQ
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S2201-ECON-2000 Economic McGraw Hill Connect Deep Inte X Grades for Sean Lee: S2201-EC X Question 8 - Fiscal Policy: Hom X C The Graph Below Depicts An E X + ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheduc... Update Fiscal Policy: Homework i Saved Help Save & Exit Submit Check my work The graph below depicts an economy where an increase in aggregate demand has caused inflation. Assume the government decides to conduct fiscal policy by decreasing government purchases to restore full-employment GDP. 10 Fiscal Policy points 180 LRAS AS еВook 160 140 Print 120 100 References 80 60 AD1 40 AD 20 100 200 300 400 500 600 700 800 900 1000 Real GDP (billions of dollars) Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. Mc Graw Hill < Prev 8 of 10 Next > Price Level
Transcribed Image Text:S2201-ECON-2000 Economic McGraw Hill Connect Deep Inte X Grades for Sean Lee: S2201-EC X Question 8 - Fiscal Policy: Hom X C The Graph Below Depicts An E X + ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheduc... Update Fiscal Policy: Homework i Saved Help Save & Exit Submit Check my work The graph below depicts an economy where an increase in aggregate demand has caused inflation. Assume the government decides to conduct fiscal policy by decreasing government purchases to restore full-employment GDP. 10 Fiscal Policy points 180 LRAS AS еВook 160 140 Print 120 100 References 80 60 AD1 40 AD 20 100 200 300 400 500 600 700 800 900 1000 Real GDP (billions of dollars) Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. Mc Graw Hill < Prev 8 of 10 Next > Price Level
< Prev S2201-ECON-2000 Economic McGraw Hill Connect Deep Inte X Grades for Sean Lee: S2201-EC X Question 8 - Fiscal Policy: Hom X C The Graph Below Depicts An E X + ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheduc... Update Fiscal Policy: Homework i Saved Help Save & Exit Submit Check my work 8. 80 60 AD, 40 10 AD points 20 100 200 300 400 500 600 700 800 900 1000 еВook Real GDP (billions of dollars) Print References Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. a. How much does aggregate demand need to change to restore the economy to its long-run equilibrium? billion b. If the MPC is 0.9, how much does government purchases need to change to shift aggregate demand by the amount you found in part a? billion Suppose instead that the MPC is 0.5. c. How much does aggregate demand and government purchases need to change to restore the economy to its long-run equilibrium? Aggregate demand needs to change by $ billion and government purchases need to change by $ | billion. 8 Mc Graw Hill 8 of 10 Next >
Transcribed Image Text:< Prev S2201-ECON-2000 Economic McGraw Hill Connect Deep Inte X Grades for Sean Lee: S2201-EC X Question 8 - Fiscal Policy: Hom X C The Graph Below Depicts An E X + ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheduc... Update Fiscal Policy: Homework i Saved Help Save & Exit Submit Check my work 8. 80 60 AD, 40 10 AD points 20 100 200 300 400 500 600 700 800 900 1000 еВook Real GDP (billions of dollars) Print References Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. a. How much does aggregate demand need to change to restore the economy to its long-run equilibrium? billion b. If the MPC is 0.9, how much does government purchases need to change to shift aggregate demand by the amount you found in part a? billion Suppose instead that the MPC is 0.5. c. How much does aggregate demand and government purchases need to change to restore the economy to its long-run equilibrium? Aggregate demand needs to change by $ billion and government purchases need to change by $ | billion. 8 Mc Graw Hill 8 of 10 Next >
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