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If the AD shortfall is $300 billion and the MPC is 0.95, Instructions: Round your responses to one decimal place. a. how large is the desired fiscal stimulus? S 15 billion b. how large an income tax cut is needed? $ billion c. alternatively, how much more government spending would achieve the target? 15 billion

If the AD shortfall is $300 billion and the MPC is 0.95, Instructions: Round your responses to one decimal place. a. how large is the desired fiscal stimulus? S 15 billion b. how large an income tax cut is needed? $ billion c. alternatively, how much more government spending would achieve the target? 15 billion

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Itranscript Problem 11-04 (Algo) If the AD shortfall is $300 billion and the MPC is 0.95, Instructions: Round your responses to one decimal place. a. how large is the desired fiscal stimulus? $ 15 billion b. how large an income tax cut is needed? billion c. alternatively, how much more government spending would achieve the target? 15 billion
Transcribed Image Text:Itranscript Problem 11-04 (Algo) If the AD shortfall is $300 billion and the MPC is 0.95, Instructions: Round your responses to one decimal place. a. how large is the desired fiscal stimulus? $ 15 billion b. how large an income tax cut is needed? billion c. alternatively, how much more government spending would achieve the target? 15 billion
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