please type answer ntsA decrease in government purchases of $17 billion leads to an initial $10.2 billion decrease in withdrawals.a. In this case MPW is 0.20 O. MPC is 0.80 and the spending multiplier in this economy ismarginal propensities and multiplier values rounded to 2 decimal places.5 Enter your responses forb. With this change in government purchases the AD curve shifts to the left by $ 75 billion. Enter your response for the size ofthe curve shift rounded to 1 decimal place. Do not put a minus sign in your answer.c. As a result of this shift the equilibrium price level will decreaseand equilibrium real output will decrease

Government purchases are federal, state, and local government expenditures on products and services.…

A decrease in government purchases of $17 billion leads to an initial $10.2 billion decrease in withdrawals. a. In this case MPW is 0.20 O. MPC is 0.80 and the spending multiplier in this economy is marginal propensities and multiplier values rounded to 2 decimal places. b. With this change in government purchases the AD curve shifts to the left by $ the curve shift rounded to 1 decimal place. Do not put a minus sign in your answer. c. As a result of this shift the equilibrium price level will decrease Enter your responses for 75 billion. Enter your response for the size of and equilibrium real output will decrease

A decrease in government purchases of $17 billion leads to an initial $10.2 billion decrease in withdrawals. a. In this case MPW is 0.20 O. MPC is 0.80 and the spending multiplier in this economy is marginal propensities and multiplier values rounded to 2 decimal places. b. With this change in government purchases the AD curve shifts to the left by $ the curve shift rounded to 1 decimal place. Do not put a minus sign in your answer. c. As a result of this shift the equilibrium price level will decrease Enter your responses for 75 billion. Enter your response for the size of and equilibrium real output will decrease

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 1.4P

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A decrease in government purchases of $10 billion leads to an initial $6 billion decrease in withdrawals. a. In this case MPW IS[ MPC IS and the spending multiplier in this economy is [ propensities and multiplier values rounded to 2 decimal places. b. With this change in government purchases the AD curve shifts to the [(Click to select) I by of the curve shift rounded to 1 decimal place. Do not put a minus sign in your answer. .Enter your responses for marginal billion. Enter your response for the size c. As a result of this shift the equilibrium price level will (Click to select) and equilibrium real output will [(Click to select)