If the MPC in an economy is 0.80, government could shift the aggregate demand curve leftward by $48 billion by  Multiple Choice *increasing taxes by $12 billion *Reducing government expenditures by $4 billion *Increasing taxes by $9.6 billion *reducing government expenditures by $48 billion.

Assume that the Marginal Propensity to Consume (MPC) is 0.8. If the multiplier effect is taken into account, the reduction in government expenditure by $ 200 million will shift the overall demand process to the correct order below. A) right, $1,000 million B) left, $ 200 million C) left, $160 million D) left, $1,000 million E) right, $ 160 million

If the MPC in an economy is 0.7, the government could shift the aggregate demand curve rightward by $30 billion by changing government purchases by $billion. Your Answer: Answer

If the marginal propensity to consume is 0.50, how much would government spending have to rise to increase output by $1,000 billion? AG = $500 billion. (Enter your response as an integer.) How much will taxes need to decrease to increase output by $1,000 billion? AT $ billion. (Enter your response as an integer.)

Assume that in the economy of Utrea, the MPC is 0.8 and the multiplier is 3 and that both government spending and autonomous taxes are increased by $40. In what direction and by how much will equilibrium GDP change?

Given that the maginal propensity to consume (MPC) is 0.50, what is the change in equilibrium output (or aggregate demand), if there is a tax is reduced by 50? Hint: Use the tax multiplier formula. -50 -25 50 25

net taxes were lowered from $5000 to $1000, the MPC is .75, and autonomous consumption spending is $10,000, by how much would consumption increase?

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.

Suppose actual real GDP is $5.49 trillion, potential real GDP is $12.48 trillion, and the marginal propensity to consume is 0.76. If we ignore price effects, and if the government already decided to increase its spending by $1.07 trillion, by how many trillions of dollars should the government change its lump sum taxes to fix the gap?  (Round this to two digits after the decimal and enter this value as either a positive value or a negative value without the dollar sign.)

no handwritten notes!