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Part 3: More Practice- Assume that in the year 2025 the US economy is in a recession that would require a $1 Trillion increase in

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Part 3: More Practice- Assume that in the year 2025 the US economy is in a recession that would require a $1 Trillion increase in total spending to get back to full employment output. Answer the following questions assuming that the marginal propensity to consume is 0.8. 11. Identify the least amount the government could spend to get the economy back to full employment. Show your work. 12. Identify the dollar amount of a tax cut to bring the economy back to full employment. Show your work. Part 4: Article Analysis- In November 2018, GM announced that it would be shutting down four additional manufacturing plants. Read the article excerpt below and answer the following questions. "The workweek after Thanksgiving opened with a shudder as General Motors announced that it would stop production at four U.S. plants and one in Canada, dooming more than 14,000 jobs... The domino effects extend outside the auto industry and, if towns aren't swift or lucky at rescuing themselves, can spiral a local economy down. "Businesses across the community suffer - not just suppliers or service providers who directly supported a closed plant, but also restaurants and bars and retailers of all kinds," John Russo and Sherry Linkon, leaders in working-class studies who used to teach at Youngstown State University, wrote in CityLab... Janesville, which has been spared the worst, lost day-care centers because out-of-work parents no longer needed someone else to keep their kids. Bowling alleys suffered because people without incomes dropped out of leagues." 13. Give your own example of a business (or industry) that would likely be affected by the closure of the GM plants. Explain your reasoning. 14. Imagine that you work in a town with a car manufacturing plant that closed. How do you think this wil likely affect your individual MPC and MPS? Explain your reasoning. 15. At the same time that car plants closed, other parts of the country experienced different economic conditions. Utah, for example, saw a tech boom that drove up wages and reduced unemployment. Explain how this exemplifies the difficulty in attempting to calculate an MPC for the entire nation

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