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2. In each of the following cases, identify the direction and size of the shift in the AD curve. a. Government purchases fall by $10
2. In each of the following cases, identify the direction and size of the shift in the AD curve. a. Government purchases fall by $10 billion in an economy with an MPW of 0.60. b. A tax cut causes an initial $25 billion rise in spending in an economy with an MPW of 0.80. c. Government purchases rise by $15 billion in an economy with an MPC of 0.25. d. A $30 billion tax rise occurs in an economy with an MPC of 0.4
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