The image attached, is a screen shot of the question. The question is: If the marginal propensity to consume was 0.8, low large would each of the following need to be in order to restore full-employment equilibrium? A. A tax increase ________billion B. A government spending cut $_________billion C. A cut in income transfers $________billion. I need to know how to figure this out.  Again the screen shot of the question with the graph it attached.

Q: From the preceding data, you know that the level of saving in the economy last year was $ billion…

A: Consumption function = C = C0 + Cy Where, C = Consumption  C0 = Autonomous Consumption  Cy = MPC Y =…

Q: A country is in the midst of a recession with real GDP estimated to be $8.1 billion below potential…

A:

Q: Keynesian 1) Draw the total expenditure and total production model. 2) Draw the total expenditure…

A: 5. Given : MPC = 60% = 0.60Thus,Multiplier(K)= 1/(1 - MPC) = 1/(1 - 0.60) K = 2.5 Also, K = Change…

Q: In a closed economy, consumers spend $400 regardless of the level of income, and the marginal…

A: The GDP is the value of the goods and services produced within the boundaries of the nation. It…

Q: Country X has following data: C = 20 + 0.8Y4, I = 30, G = 40, T, = 20, T, = 15, X = 60, M = 20 +…

A: Here we calculate the following terms by using the given function and conclude the solution so the…

Q: Given the following information, answer the question. Autonomous consumption = R100 million…

A: It is given that,autonomous consumption is R 100 million.Investment spending = R 300…

Q: Which of the following fiscal policy actions would be appropriate if the economy is experiencing an…

A: Fiscal policy is a macroeconomic policy tool that governments utilize to impact an economy's overall…

Q: Referring to this table, calculate the marginal propensity to consume. Type your response Output…

A: Marginal propensity to consume is a measure of change in consumption because of change in income or…

Q: 1. Your friend just got an unexpected $1500 tax refund. She plans to put $800 toward paying off…

A: Answer; MPC = Increase in consumption / Increase in income = $100 / $1,000 = 0.1

Q: If the marginal propensity to consume was 0.7, how large would each of the following need to be in…

A: The marginal propensity refers to the amount, by which consumption changes when income changes. It…

Q: Consider an economy described by the following set of equations: c = 120 +0.08Y I = 320 G = 480 X-IM…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Suppose an economy with the following characteristics. Y = Real GDP or national income T= Taxes =…

A:

Q: Assume the economy is in a recession and real GDP is below its potential level of output. The MPC is…

A: This can be described as a concept that shows how much part or portion of an additional income…

Q: Calculate the total change in aggregate spending if investment decreases by $250 billion and the…

A: We are given:-- Reduction in investment= $250 billion MPC= 0.9

Q: Real Aggregate Expenditures ($) 7,000 6,000 5,000 4,000 3,000 2,000 1,000 AP AE 1,000 2,000 3,000…

A: Keynesianism has progressed in its ability to address economic downturns by government…

Q: If investment increases by $50 billion, by how much will aggregate demand change?   Aggregate demand…

A: The aggregate demand/aggregate supply model is a model that represents what regulates the total…

Q: What would have a larger effect on aggregate demand: $150 billion of tax cuts or $150 billion of…

A: Government expenditure is the amount of money spent by the government on welfare projects and for…

Q: Use the graph to answer the following question: Investment Demand Quantity of Investment If the…

A: Fiscal policy, measures utilized by state run administrations to settle the economy, explicitly by…

Q: Suppose the economy is in a recession. The economy needs to expand by at least $450 billion, and the…

A: The Marginal Propensity to Consume (MPC) is an economic concept that calculates the change in…

Q: Question: Use The Following Information To Work Problems 4 To 6. In An Economy With No Exports And…

A:

Q: Discuss characteristics of an economy that helps itself correct from a recessionary gap.

A: Potential GDP is the GDP that an economy can produce, given all its resources are at full employment…

Q: When taxes increase, consumption _____, business investment ______, and real GDP output ______. A.…

A: An increase in taxes leads to a fall in the disposable income available for consumption. This…

Q: 3 b. C. the aggregate demand curve. Draw the AE curve for this case. Suppose an increase in the…

A: Aggregate demand is the total demand generated within macro economy, given the parameters like…

Q: Q1) Would you expect the short-run marginal propensity to consume to be different between farmers…

A: The marginal propensity to consume (MPC) is a term used in economics to describe how much a boost in…

Q: You are given the following data C=130+0.5 (1-t) Y (Consumption) T = tY (Tax revenue) (Investment)…

A: Given Information Consumption (C) = 130 + 0.5 (1-t)YTax Revenue (T) = tYInvestment (I) = 120Tax Rate…

Q: aggregate planned expenditure

A: National income is a measure of the total cost of all items and offerings produced using the…

Q: Hello, I sent those questions yesterday and just the first part was answered. I would like help on…

A: Answer – Dear student Thank you for submitting your question. Since this is a multiple question we…