Question
I. Completely answer the following problems: 1. The economy is in equilibrium of full employment at $ 825 billion. However, aggregate demand increases causing GDP
I. Completely answer the following problems:
1. The economy is in equilibrium of full employment at $ 825 billion. However, aggregate demand increases causing GDP to be at the level of $ 1,225 trillion. Note that the economy registers a PMC = 0.60.
+a. What type of fiscal policy will have to be implemented (restrictive fiscal policy or expansive fiscal policy)?
+b. If applying a fiscal policy using only government spending (G), by how much would government spending have to increase or decrease to return to full employment GDP.
+c. To apply a fiscal policy exclusively using the tax tool (T), by how much would you have to increase or decrease taxes to return to full employment GDP.
+d. If a dual fiscal policy is applied, that is, using taxes (T) and government expenses (G), by how much would T and G have to increase or decrease to return to the GDP of full employment
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