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Using the graph below, assume Yf=$14.2 Trillion and Y1 = $14.9 Trillion, then with an MPC of 93%, what would Keynes recommend the government does? ASLR ASSR1 PL P1- P2- AD1 Yf Y1 RGDP = Y a. The government should cut its spending by $700 billion O b. The government should cut its spending by $49.01 billion Oc. The government should increase its spending by $700 billion ◇ d. The government should increase its spending by $49.01 billion

Using the graph below, assume Yf=$14.2 Trillion and Y1 = $14.9 Trillion, then with an MPC of 93%, what would Keynes recommend the government does? ASLR ASSR1 PL P1- P2- AD1 Yf Y1 RGDP = Y a. The government should cut its spending by $700 billion O b. The government should cut its spending by $49.01 billion Oc. The government should increase its spending by $700 billion ◇ d. The government should increase its spending by $49.01 billion

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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Using the graph below, assume Yf=$14.2 Trillion and Y1 = $14.9 Trillion, then with an MPC of 93%, what would Keynes recommend the government does? ASLR ASSR1 PL P1- P2- AD1 Yf Y1 RGDP = Y a. The government should cut its spending by $700 billion O b. The government should cut its spending by $49.01 billion Oc. The government should increase its spending by $700 billion ◇ d. The government should increase its spending by $49.01 billion
Transcribed Image Text:Using the graph below, assume Yf=$14.2 Trillion and Y1 = $14.9 Trillion, then with an MPC of 93%, what would Keynes recommend the government does? ASLR ASSR1 PL P1- P2- AD1 Yf Y1 RGDP = Y a. The government should cut its spending by $700 billion O b. The government should cut its spending by $49.01 billion Oc. The government should increase its spending by $700 billion ◇ d. The government should increase its spending by $49.01 billion
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