Question
Fill in the blank for all 5 questions with just numbers (no dollar signs, no decimal places, no units, just the numbers). If the MPC
Fill in the blank for all 5 questions with just numbers (no dollar signs, no decimal places, no units, just the numbers).
If the MPC is 0.75 and expansionaryfiscal policy cut taxes by$100 billion,then the equilibrium GDP will increase by $______billion.
If the MPC is 0.80 and G increases by $3 billion, the equilibrium GDP will increase by $_____billion.
If the multiplier in an economy is 5, a $20 billion increase in G to close a recessionary gap will increase GDP by $______billion.
If the MPC in an economy is 0.8, government could shift the aggregate demand curve rightward by $100 billion by decreasing taxes by $______billion.
If the MPC in an economy is 0.75, government could shift the aggregate demand curve leftward by $60 billion by increasing taxes by $______billion
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