Assume the economy is currently experiencing a 100 billion-dollar recessionary gap. Furthermore, assume the marginal propensity to consume is .80. In order to eliminate the recessionary gap, the federal government needs to change taxes by billion.

Assume the economy is currently experiencing a 100 billion-dollar recessionary gap. Furthermore, assume the marginal propensity to consume is .80. In order to eliminate the recessionary gap, the federal government needs to change taxes by billion.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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