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Scre Price Level Check my Fiscal Policy 180 LRAS 160 140 120 100 80 60 40- 20 0 S AS AD₁ AD 100 200 300 400 500 600 700 800 900 1000 Real GDP (billions of dollars) Real GDP (billions of dollars) < Prev Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. a. How much does aggregate demand need to change to restore the economy to its long-run equilibrium? billion b. If the MPC is 0.75, how much does government purchases need to change to shift aggregate demand by the amount you found in part a? $ billion Suppose instead that the MPC is 0.6. c. How much does aggregate demand and government purchases need to change to restore the economy to its long-run equilibrium? Aggregate demand needs to change by $ billion and government purchases need to change by $1 billion. 20 0 100 200 300 400 500 600 700 800 900 1000 Real GDP (billions of dollars) JUL 1 ? 21 2 < Prev 2 of 12 Next > < Prev 2 of 12 Next > Real GDP (billions of dollars) #3 80 DOD W E S X D $ 4 C 5 25 < Prev 2 of 12 Next > MacBook Air 6666 & 7 44 F7 R T Y U FI F G V R T DD FB F9 20 W * 00 8 9 ° N J K O D F10 V L P A

Scre Price Level Check my Fiscal Policy 180 LRAS 160 140 120 100 80 60 40- 20 0 S AS AD₁ AD 100 200 300 400 500 600 700 800 900 1000 Real GDP (billions of dollars) Real GDP (billions of dollars) < Prev Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. a. How much does aggregate demand need to change to restore the economy to its long-run equilibrium? billion b. If the MPC is 0.75, how much does government purchases need to change to shift aggregate demand by the amount you found in part a? $ billion Suppose instead that the MPC is 0.6. c. How much does aggregate demand and government purchases need to change to restore the economy to its long-run equilibrium? Aggregate demand needs to change by $ billion and government purchases need to change by $1 billion. 20 0 100 200 300 400 500 600 700 800 900 1000 Real GDP (billions of dollars) JUL 1 ? 21 2 < Prev 2 of 12 Next > < Prev 2 of 12 Next > Real GDP (billions of dollars) #3 80 DOD W E S X D $ 4 C 5 25 < Prev 2 of 12 Next > MacBook Air 6666 & 7 44 F7 R T Y U FI F G V R T DD FB F9 20 W * 00 8 9 ° N J K O D F10 V L P A

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Scre Price Level Check my Fiscal Policy 180 LRAS 160 140 120 100 80 60 40- 20 0 S AS AD₁ AD 100 200 300 400 500 600 700 800 900 1000 Real GDP (billions of dollars) Real GDP (billions of dollars) < Prev
Transcribed Image Text:Scre Price Level Check my Fiscal Policy 180 LRAS 160 140 120 100 80 60 40- 20 0 S AS AD₁ AD 100 200 300 400 500 600 700 800 900 1000 Real GDP (billions of dollars) Real GDP (billions of dollars) < Prev
Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. a. How much does aggregate demand need to change to restore the economy to its long-run equilibrium? billion b. If the MPC is 0.75, how much does government purchases need to change to shift aggregate demand by the amount you found in part a? $ billion Suppose instead that the MPC is 0.6. c. How much does aggregate demand and government purchases need to change to restore the economy to its long-run equilibrium? Aggregate demand needs to change by $ billion and government purchases need to change by $1 billion. 20 0 100 200 300 400 500 600 700 800 900 1000 Real GDP (billions of dollars) JUL 1 ? 21 2 < Prev 2 of 12 Next > < Prev 2 of 12 Next > Real GDP (billions of dollars) #3 80 DOD W E S X D $ 4 C 5 25 < Prev 2 of 12 Next > MacBook Air 6666 & 7 44 F7 R T Y U FI F G V R T DD FB F9 20 W * 00 8 9 ° N J K O D F10 V L P A
Transcribed Image Text:Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. a. How much does aggregate demand need to change to restore the economy to its long-run equilibrium? billion b. If the MPC is 0.75, how much does government purchases need to change to shift aggregate demand by the amount you found in part a? $ billion Suppose instead that the MPC is 0.6. c. How much does aggregate demand and government purchases need to change to restore the economy to its long-run equilibrium? Aggregate demand needs to change by $ billion and government purchases need to change by $1 billion. 20 0 100 200 300 400 500 600 700 800 900 1000 Real GDP (billions of dollars) JUL 1 ? 21 2 < Prev 2 of 12 Next > < Prev 2 of 12 Next > Real GDP (billions of dollars) #3 80 DOD W E S X D $ 4 C 5 25 < Prev 2 of 12 Next > MacBook Air 6666 & 7 44 F7 R T Y U FI F G V R T DD FB F9 20 W * 00 8 9 ° N J K O D F10 V L P A
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