Question 15 Suppose the government decides to increase taxes by $30 billion to increase unemployment benefits by $50 billion. If the MPC is 0.85, will aggregate demand increase, decrease, or remain unchanged at current prices with this combined tax transfer policy? O Decrease in AD O Increase in AD O No change Question 16 If the AD shortfall is $500 billion and the MPC is 0.95, how large is the desired fiscal stimulus?$billion (Round your answer to one decimal place) Question 17 If the AD shortfall is $500 billion and the MPC is 0.95, how large an income tax cut is needed? $ _ billon (Round your answer to one decimal place)
Question 15 Suppose the government decides to increase taxes by $30 billion to increase unemployment benefits by $50 billion. If the MPC is 0.85, will aggregate demand increase, decrease, or remain unchanged at current prices with this combined tax transfer policy? O Decrease in AD O Increase in AD O No change Question 16 If the AD shortfall is $500 billion and the MPC is 0.95, how large is the desired fiscal stimulus?$billion (Round your answer to one decimal place) Question 17 If the AD shortfall is $500 billion and the MPC is 0.95, how large an income tax cut is needed? $ _ billon (Round your answer to one decimal place)
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: The Influence Of Monetary And Fiscal Policy On Aggregate Demand
Section: Chapter Questions
Problem 7PA
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