A decrease in government purchases of $6 billion leads to an initial $4.5 billion decrease in withdrawals. a. In this caseMPW is, MPC is, and the spending multiplier in this economy is Enter your responses for marginal propensitiesand multiplier values rounded to 2 decimal places. b. With this change in government purchases the AD curve shifts tothe by $billion. Enter your response for the size of the curve shift rounded to 1 decimal place. Do not put a minussign in your answer. c. As a result of this shift the equilibrium price level will (Click to select) vv and equilibrium realoutput willCA decrease in government purchases of $6 billion leads to an initial $4.5 billion decrease in withdrawals.MPC isa. In this case MPW is, and the spending multiplier in this economy ispropensities and multiplier values rounded to 2 decimal places.Enter your responses for marginalb. With this change in government purchases the AD curve shifts to the (Click to select) by $of the curve shift rounded to 1 decimal place. Do not put a minus sign in your answerbillion. Enter your response for the sizec. As a result of this shift the equilibrium price level will (Click to select) and equilibrium real output will (Click to select)

The marginal propensity to withdraw refers to the portion of the additional income a consumer…

A decrease in government purchases of $6 billion leads to an initial $4.5 billion decrease in withdrawals. a. In this case MPW is, MPC is, and the spending multiplier in this economy is Enter your responses for marginal propensities and multiplier values rounded to 2 decimal places. b. With this change in government purchases the AD curve shifts to the by $billion. Enter your response for the size of 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 (Click to select) w and equilibrium real output will A decrease in government purchases of $6 billion leads to an initial $4.5 billion decrease in withdrawals. MPC is a. In this case MPW is , and the spending multiplier in this economy is propensities and multiplier values rounded to 2 decimal places Enter your responses for marginal b. With this change in government purchases the AD curve shifts to the (Click to select) by $ of the curve shift rounded to 1 decimal place. Do not put a minus sign in your answer 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)

A decrease in government purchases of $6 billion leads to an initial $4.5 billion decrease in withdrawals. a. In this case MPW is, MPC is, and the spending multiplier in this economy is Enter your responses for marginal propensities and multiplier values rounded to 2 decimal places. b. With this change in government purchases the AD curve shifts to the by $billion. Enter your response for the size of 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 (Click to select) w and equilibrium real output will A decrease in government purchases of $6 billion leads to an initial $4.5 billion decrease in withdrawals. MPC is a. In this case MPW is , and the spending multiplier in this economy is propensities and multiplier values rounded to 2 decimal places Enter your responses for marginal b. With this change in government purchases the AD curve shifts to the (Click to select) by $ of the curve shift rounded to 1 decimal place. Do not put a minus sign in your answer 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)

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 $2 billion leads to an initial $1.1 billion decrease in withdrawals. a. In this case MPW is MPC is ,and the spending multiplier in this economy is Enter your responses for marginal propensities and multiplier values rounded to 2 decimal places. b. With this change in government purchases the AD curve shifts to the (OClick to select) v by $ of the curve shift rounded to1 decimal place. Do not put a minus sign in your answer. billion. Enter your response for the size C. As a result of this shift the equilibrium price level will (Click to select) v and equilibrium real output will (Click to select) v
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