Congratulations. You've just been appointed chairman of the Council of Economic Advisers in Textland. You must rely on your research assistant for the specific numbers. He says income is $49,000,mpeis 0.75, and the president wants to raise output by $1,960.

Instructions:Enter your responses rounded to the nearestwhole dollar amount.

a. You should advise the president to:

Increasegovernment spending by $____or decreasetaxes by $____.

b. Your research assistant comes in and says "Sorry, I meant that thempeis 0.6." You redo your calculations.

Increase government spending by $___ ordecreasetaxes by $____.

c. You're just about to see the president when your research assistant comes running in, saying, "Sorry, sorry, I meant that thempeis 0.5." Redo your calculations.

Increasegovernment spending by $____ordecreasetaxes by $____.