Assume that a hypothetical economy with an MPC of 0.75 is experiencing a severe recession. By how much would government spending have to rise to shift the aggregate demand curve rightward by $50 billion? Instructions: Round your answer to two decimal places.
$ [removed] billion How large a tax cut would be needed to achieve the same increase in aggregate demand? Instructions: Round your answer to two decimal places. Enter a positive value.
$ [removed] billion Determine one possible combination of government spending increases and tax increases that would accomplish the same goal. Increase spending by $ [removed] billion and increase taxes by $ [removed] billion.
check my workeBook Linkreferences