140 130 LRAS 80 70 ༈ ཎྜ ྨ ཎྜ ཎྜ ྣ ྨ ➢ 8 g 120 110 100 50 נוורב רבבו 40 0 AS AD AD. 1 80 160 240 320 400 480 560 640 720 800 (240, 40) Real GDP (billions of dollars) Show Transcribed Text a. How much does aggregate demand need to change to restore the economy to its long-run equilibrium? billion b. If the MPC is 0.5, how much do taxes need to change to shift aggregate demand by the amount you found in part a? $[ billion Suppose instead that the MPC is 0.6. c. How much does aggregate demand and taxes need to change to restore the economy to its long-run equilibrium? Aggregate demand needs to change by $1 billion and taxes need to change by $[ billion.

140 130 LRAS 80 70 ༈ ཎྜ ྨ ཎྜ ཎྜ ྣ ྨ ➢ 8 g 120 110 100 50 נוורב רבבו 40 0 AS AD AD. 1 80 160 240 320 400 480 560 640 720 800 (240, 40) Real GDP (billions of dollars) Show Transcribed Text a. How much does aggregate demand need to change to restore the economy to its long-run equilibrium? billion b. If the MPC is 0.5, how much do taxes need to change to shift aggregate demand by the amount you found in part a? $[ billion Suppose instead that the MPC is 0.6. c. How much does aggregate demand and taxes need to change to restore the economy to its long-run equilibrium? Aggregate demand needs to change by $1 billion and taxes need to change by $[ billion.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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