If the MPC in an economy is .8, government could shift the aggregate demand curve rightward by $100 billion by: increasing government spending by $25 billion. increasing government spending by $80 billion. decreasing taxes by $25 billion. decreasing taxes by $100 billion.

Consider the following economy:   C = 300 + 0.8 (Y – T) I = $300                                               G = $200 and T = $250   What is the equilibrium level of national income? What is the change in national income, if only government spending increases by $10?  What is the government spending multiplier? What is the change in national income, if only taxes increase by $10? What is the tax       multiplier? Based on (b) and (c), does the balanced budget multiplier theorem hold? What is the change in national income, if both government spending and taxes increase by $10 each?

my choice is incorrect

Suppose you are given the following information. Autonomous spending is at $3000, government spending is at $4000, investment spending is at $2000, net exports are $1000, taxes are set at $3000 and the mpc is .8 or 80%. What is the equilibrium level of output? What would happen if the government tried to balance the budget? The other day, it was announced the consumer confidence was up last month. This sounded good news bells for firms. Why? What would be affected in our equation above? Why would it matter? Suppose the government tried to balance the budget my cutting spending, what would be the equilibrium level of output? If there is “crowding out (or in)”, what else might change in your equation? What impact would that have

3. The Government of Wonderland decides to adopt an expansionary fiscal policy increasing its expenditure (G) by $500 billion. They know that the value of MPC is 0.6. By how much should the economy be expected to expand? Answer Here: Gxmpc=$100X0.6 200 Will Crowding Out affect the final outcome of this move? Explain your answer Answer Here:

in another economy, the MPC = 4/5, government needs to increase expenditures $20 to complete a project, but it does not want to increase debt so it increases taxes $20 also. What, if any, will be the change in output generated by this balanced - budget expenditure scenario?

The government lowers $0.9 trillion in taxes, restoring GDP from $10 trillion to its potential level of $11.2 trillion. What is the value of the tax multiplier?   A -1.33   B -0.9   C -0.75   D -1   E -1.2

income taxes and government spending during a recession. Automatic stabilizers increase; increase increase; decrease decrease; increase decrease; decrease

Assume the tax multiplier is estimated to be 1.3 and the aggregate supply curve has its usual upward slope. Suppose the government lowers taxes by $75 million. Aggregate demand will by $ million. (Enter your response rounded to one decimal place.)

Government spending in Robok is $140 billion, and its only tax is an income tax with a marginal tax rate of 0.2. a. The balance on the government's budget at a GDP level of $450 billion is a (Click to select) : of $ billion. b. The balance on the government's budget at a GDP level of $800 billion is a ( (Click to select) : of $ billion. C. At what level of GDP will the economy of Robok have a balanced budget? Robok will have a balanced budget at a GDP level of $ [ ]billion.