Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. 0. How much does aggregate demand need to change to restore the economy to its long-run equilibrium? billion b. If the MPC is 0.667, how much do taxes need to change to shift aggregate demand by the amount you found in part a? billion Suppose insteed that the MPC is 0.5. C. How much does aggregate demand and taxes need to change to restore the economy to its long-run equilibrium? Aggregate demand needs to chenge by $ ] billion and taxes need to change by $[ billion.
Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. 0. How much does aggregate demand need to change to restore the economy to its long-run equilibrium? billion b. If the MPC is 0.667, how much do taxes need to change to shift aggregate demand by the amount you found in part a? billion Suppose insteed that the MPC is 0.5. C. How much does aggregate demand and taxes need to change to restore the economy to its long-run equilibrium? Aggregate demand needs to chenge by $ ] billion and taxes need to change by $[ billion.
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 1.7P
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