Answered: If the AD excess is $100 billion and…

If the AD excess is $100 billion and the MPC is 0.5 Instructions: Enter your responses as whole numbers. (a) How much fiscal restraint is desired?

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 1.4P

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Question

If the AD excess is $100 billion and the MPC is 0.5
Instructions: Enter your responses as whole
numbers.
(a) How much fiscal restraint is desired?
$ billion
(b) By how much do income taxes have to be
increased to get that restraint?
$ billion

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