Bookshelf: Weste.\ Transfer Credit Ins...\ Mail - Jackson Sh..\ myBama\ Institution Page\ Peregrine Global.w\ canvas\ ce\ Assignment Score:\ Resources\ Give Up?\ Feedback\ Resume\ Question 16 of 23\ Suppose Kittyville's full-employment GDP is

$600

billion, and the current equilibrium GDP is

$400

billion. The MPC in this economy equals 0.90 . Kittyville's economy has expenditure gap. To correct this gap, Kittyville hires an economist, Kittyzen Keynes, who suggests government spending or taxes.\ Suppose Kittyville decides to change government spending under Keynes' advice. By how much must government spending change to correct for the expenditure gap (rounded to nearest billion dollars)?\

$

\ billion dollars\ Incorrect\ Suppose Kittyville instead decides to change taxes under Keynes' advice. By how much must taxes change to correct for the expenditure gap (rounded to nearest billion dollars)?\

$

\ billion dollars\ Incorrect

Suppose Kittyville's full-employment GDP is $600 billion, and the current equilibrium GDP is $400 billion. The MPC in this economy equals 0.90 . Kittyville's economy has expenditure gap. To correct this gap, Kittyville hires an economist, Kittyzen Keynes, who suggests government spending or taxes. Suppose Kittyville decides to change government spending under Keynes' advice. By how much must government spending change to correct for the expenditure gap (rounded to nearest billion dollars)? $ billion dollars Incorrect Suppose Kittyville instead decides to change taxes under Keynes' advice. By how much must taxes change to correct for the expenditure gap (rounded to nearest billion dollars)? $ billion dollars