Please answer the question: * the attached photo is for you to see that it is connected to the question *If current real GDP is P700 billion, which of the following policies would bring the economy to potential output? a. decrease taxes by P100 billionb. increase taxes by P100 billionc. decrease taxes by P25 billiond. increase taxes by P25 billion Questions number 6 to 10 are based on having an MPC equal to 0.8 andpotential output is P800 billion. Question #6. The government spendingmultiplier is: *a. 0.8b. 1.25c. 5d. 47. If the current real GDP is P700 billion: *a. there is an inflationary gapb. there is a recessionary gapc. the economy is in long-run equilibriumd. government transfers should be decreased.

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Questions number 6 to 10 are based on having an MPC equal to 0.8 and potential output is P800 billion. Question #6. The government spending multiplier is: * а. 0.8 b. 1.25 с. 5 O d. 4 7. If the current real GDP is P700 billion: O a. there is an inflationary gap b. there is a recessionary gap c. the economy is in long-run equilibrium d. government transfers should be decreased.

Questions number 6 to 10 are based on having an MPC equal to 0.8 and potential output is P800 billion. Question #6. The government spending multiplier is: * а. 0.8 b. 1.25 с. 5 O d. 4 7. If the current real GDP is P700 billion: O a. there is an inflationary gap b. there is a recessionary gap c. the economy is in long-run equilibrium d. government transfers should be decreased.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter9: The Keynesian Model In Action

Section: Chapter Questions

Problem 14SQ

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