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Please help me with my ap macroecon questions Sample Fiscal Policy Problem #1 1. What type of gap? 2. To close the gap the government
Please help me with my ap macroecon questions
Sample Fiscal Policy Problem #1 1. What type of gap? 2. To close the gap the government could spending or taxes on consumers rice Level LRAS AS Assume the MPC is 0.5: 3. How much should the government change spending to close the gap? PL 4. How much should the government change taxes to close the gap? AD $60 $100 Real GDP (billions) Now assume that the MPC is 0.8: 5. How much should the government change spending to close the gap? 6. How much should the government change taxes to close the gap? Sample Fiscal Policy Problem #2 1. What type of gap? 2. To close the gap the government could ce Level spending or taxes on consumers Assume the MPS is 0.1: AS 3. How much should the government change spending to close the gap? PL AD 4. How much should the government change taxes to close the gap? $100 $120 Real GDP (billions) Now assume that the MPS is 0.2: 5. How much should the government change spending to close the gap? 6. How much should the government change taxes to close the gapStep by Step Solution
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