Suppose that there are no crowding out effects and the MPC is .7. By how much must the government increase expenditures to shift the aggregate demand curve right by $10 billion?

How much government spending needs to be increased to maintain full employment in the economy If the economy was facing recessionary gap of $900 billions? Assume MPC is .9. How much tax cut should government give if they wanted to eliminate this recessionary gap through tax cut?

1. Which of the following is an example of an automatic stabilizer? The savings Unemployment benefits Autonomous public expenditure The multiplier effect

Don't answer by pen paper and don't use chatgpt otherwise we will give dounvote

Figure 34-8 P AD₂ Refer to Figure 34-8. An increase in taxes will AD₁ shift aggregate demand from AD, to AD3. cause movement from point A to point B along AD₁. O have no effect on aggregate demand. shift aggregate demand from AD, to AD₂. AD₂

Question 1 There is a recession gap of $150 billion in the economy. The MPS is 20%. What is the MPC [Select] and the Government Spending Multiplier [Select] Government need to [Select] much [Select] change taxes, would they [Select] the Tax multiplier [Select] [Select] ? Would the spending? By how ? If the Government decided to taxes? What is and by how much

Suppose the government, in an effort to avoid an increase in the deficit, votes for a budget neutral tax cut policy. Assume the marginal propensity to consume (MPC) is equal to 0.75 and taxes are cut by $15 billion. Round answers to the nearest billion, and specify decreases as a negative number. By how much will government spending change? change in government spending: $ What is the resulting change in the equilibrium level of real GDP? change in equilibrium level of real GDP: $ billion billion

There is a tax-cut that increases your Disposable Income by $3,400, which you intend to save $510. a. Calculate the MPC. b. Interpret this MPC. (What does it mean? Define MPC and describe in this context.)c. What is the resulting fiscal multiplier? d. Interpret the multiplier and describe the multiplier effect. e. Find the total change to the economy from this tax change.

If the MPS in an economy is 0.2. What is the tax multiplier? Group of answer choices a. 4 b. 5 c. -4 d. -5

What is the effect of an increase in taxes when the economy is above full​ employment? What is the magnitude of the tax​ multiplier? An increase in taxes when the economy is above full employment​ _______ aggregate demand and real​ GDP, and the price level​ _______.     A. ​increases; falls   B. ​increases; rises   C. does not​ change; does not change   D. ​decreases; falls The magnitude of the tax multiplier is equal to​ _______.     A. MPC times the government expenditure multiplier   B. the government expenditure multiplier divided by MPC   C. MPC   D. the government expenditure multiplier