5. If consumers in a country spend 3/4 of their disposable income. If their government increases its spending by 75 trillion and in order to maintain a balanced budget simultaneously increases taxes by 75 trillion. Calculate the effect of the 75 trillion change in government spending and 75 trillion change in taxes on the country’s aggregate demand. 16. If consumers in a country spend 4/5 of their disposable income. If their government decreases its spending by 55 trillion and in order to maintain a balanced budget simultaneously decreases taxes by 55 trillion. Calculate the effect of the 55 trillion change in government spending and 55 trillion change in taxes on the country’s aggregate demand.
15. If consumers in a country spend 3/4 of their disposable income. If their government increases its spending by 75 trillion and in order to maintain a balanced budget simultaneously increases taxes by 75 trillion. Calculate the effect of the 75 trillion change in government spending and 75 trillion change in taxes on the country’s aggregate demand.
16. If consumers in a country spend 4/5 of their disposable income. If their government decreases its spending by 55 trillion and in order to maintain a balanced budget simultaneously decreases taxes by 55 trillion. Calculate the effect of the 55 trillion change in government spending and 55 trillion change in taxes on the country’s aggregate demand.
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