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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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