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In each case below a particular fiscal policy affects an economy's AD curve via the spending multiplier. Calculate the spending multiplier and find the direction

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In each case below a particular fiscal policy affects an economy's AD curve via the spending multiplier. Calculate the spending multiplier and find the direction and size of the shift in the AD curve. Enter your tesponses for the spending multipler rounded to 2 decimal ploces, and size of the shin of the AD curve rounded to 1 decimat place. Do not put minus signs in your ancwers a. If government purchases increase by $5 billion in an economy with an MPW of 050 then the spending multiplier is AD curve finally shifts to the by $ billion and the b. If government purchases decrease by $9 billion in an economy with an MPC of 0.25 then the spending multiplier is AD curve finally shifts to the by $ billion. and the c. If a $7 billion tax rise occurs in an economy with an MPW of 0.55 then the spending multiplier is shifts to the by $ billion and the AD curve finally d. If a $2 billion tax cut causes an initial $0.3 billion increase in spending on domestic items then the spending multiplier is the AD curve finally shifts to the by $ billion. and

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