None 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?ASLRASSR1PLP1-P2-AD1YfY1RGDP = Ya. The government should cut its spending by $700 billionO b. The government should cut its spending by $49.01 billionOc. The government should increase its spending by $700 billion◇ d. The government should increase its spending by $49.01 billion

we need to follow Keynesian economic principles to determine the government's fiscal policy…

Answered: Using the graph below, assume Yf=$14.2…

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter10: Keynesian Macroeconomics And Economic Instability: A Critique Of The Self Regulating Economy

Section10.2: The Simple Keynesian Model

Problem 3ST

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