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If the marginal propensity to consume was 0.85, how large would each of the following need to be in order to restore full-employment equilibrium?Instructions: Enter

If the marginal propensity to consume was 0.85, how large would each of the following need to be in order to restore full-employment equilibrium?Instructions: Enter your responses rounded to one decimal place.a. A tax increase.b. A government spending cut.c. A cut in income transfers.

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Refer to the figure below: AS E. PE Price Level (average price) PF Gap AD Excess AD 2 5.8 6.0 6.2 Q F Real Output (trillions of dollars per year)

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