Economics 4) The GNP of a country is currently 500 billion dollars. The MPC ,s 0.75 and total investments is 50 bil while the gov. exp. is 20 bil. a) What is agg. demand of that country? Is there an equilibrium currently in that economy? b) Can we use monetary policy in that country to stimulate the economy if currently the interest rates are close to zero? Why or why not? b) To restore the equilibrium and to increase the agg. demand; govt. decides to increase the govt. expenditures. Assuming Keynesian fiscal analysis is valid; how much the govt. Expenditures must be increased to restore the equilibrium in that economy