Assume MPS-.3, Actual Real GDP-$560 and Potential Output $300. Answer the following questions: A. By how much would the government increase or decrease government spending to close this gap? B. By how much would the government increase or decrease taxes to close the Gap? $78.1 decrease: $111.59 increase $300 decrease: $260 decrease m $111.59 decrease; $78.1 decrease Not enough information provided

Assume MPS-.3, Actual Real GDP-$560 and Potential Output $300. Answer the following questions: A. By how much would the government increase or decrease government spending to close this gap? B. By how much would the government increase or decrease taxes to close the Gap? $78.1 decrease: $111.59 increase $300 decrease: $260 decrease m $111.59 decrease; $78.1 decrease Not enough information provided

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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