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Instructions: Enter your answers as a whole number. a. How much does aggregate demand need to change to restore the economy to its long-run equilibrium?
Instructions: Enter your answers as a whole number. a. How much does aggregate demand need to change to restore the economy to its long-run equilibrium? '25 billion b. If the MPC is 0.8, how much does government purchases need to change to shi.' aggregate demand by the amount you found in part a? $ |:| billion Suppose instead that the MPC is 0.75. c. How much does aggregate demand and government purchases need to change to restore the economyto its long-run equilibrium? Aggregate demand needs to change by 35 billion and government purchases need to change by '25 billion
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