Congratulations! You've just been appointed the chair of the Council of Economic Advisers in Cellphoneland. You must rely on your research assistant for the specific numbers. He says income (or output) is $50,000, mpc is 0.75, and the president wants to raise output by $2,000. a. Advise the president. What policy should the government undertake to achieve this goal? Show b. Your research assistant comes in and says, "Sorry, I meant that the Redo your calculations. your calculations. mpc is 0.5."
Congratulations! You've just been appointed the chair of the Council of Economic Advisers in Cellphoneland. You must rely on your research assistant for the specific numbers. He says income (or output) is $50,000, mpc is 0.75, and the president wants to raise output by $2,000. a. Advise the president. What policy should the government undertake to achieve this goal? Show b. Your research assistant comes in and says, "Sorry, I meant that the Redo your calculations. your calculations. mpc is 0.5."
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:2. Congratulations! You've just been appointed the chair of the Council of Economic Advisers
in Cellphoneland. You must rely on your research assistant for the specific numbers. He says
income (or output) is $50,000, mpc is 0.75, and the president wants to raise output by $2,000.
a. Advise the president. What policy should the government undertake to achieve
this goal? Show
b. Your research assistant comes in and says, "Sorry, I meant that the
Redo your calculations.
your
calculations.
mpc
is 0.5."
NOV
11
23
30
MacBook Pro
20
000
000
DII
DD
F3
F4
F5
F6
F7
F8
F9
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