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Fiscal Policy options to address a recessionary gap: Suppose the economy's MPC is 0.80 If the government increases spending by $200 billion, what will the
Fiscal Policy options to address a recessionary gap:
Suppose the economy's MPC is 0.80
- If the government increases spending by $200 billion, what will the cumulative increase in AD be equal to?
- If the government decreases taxes by $200 billion, what will the cumulative increase in AD be equal to?
- Does a given increase in government spending have a greater or less impact on AD than a given decrease in taxes? Why?
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The End Of Individualism And The Economy Emerging Paradigms Of Connection And Community
Authors: Ann E Davis
1st Edition
0429840497, 9780429840494
