The marginal propensity to expend is 0.5 and there is a recessionary gap of $200. What fiscal policy would you recommend? (Assume mpe = mpc) 0000 Expansionary fiscal policy, increase government expenditures by $100, or cut taxes by $200. Contractionary fiscal policy; decrease government expenditures by $200, or cut taxes by $100. Contractionary fiscal policy, decrease government expenditures by $100, or cut taxes by $200. Expansionary fiscal policy, increase government expenditures by $200, or cut taxes by $100.

Question 18

Question 33   Expansionary fiscal policy occurs when the government increases __________, decreases __________, or both to stimulate the economy toward expansion.   spending; the money supply   taxes; spending   the money supply; spending   spending; taxes   the money supply; taxes     Question 34   If your marginal propensity to consume is 0.6 and you get an additional $600 in income, you would spend ______ on consumption.   $200   $240   $360   $1,000   $1,500       Question 35   If a bank has a required reserve ratio of 25% and there are $5,300,000 in deposits, what is amount of required reserves?   $25,000   $280,000   $1,325,000   $2,275,000   $5,005,000

Suppose the economy begins at full employment. Label this starting point as point "1." Then, suppose that an upcoming political election causes anxiety among consumers and consumption falls. Show the effects on your graph and label the new equilibrium point "2." Lastly, our government wants the economy to return to full-employment as quickly as possible. Should it intervene? If so, show the impact of successful fiscal policy on your graph. Label this new equilibrium point "3."

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Government Purchases (G) and Tax Revenues (T) 0 H J K L GDP Refer to the above graph. If the full-employment level of GDP for this economy is at H, the: T O cyclically adjusted budget will produce a surplus. O actual budget will produce a deficit. O cyclically adjusted budget will produce a deficit. O actual budget will produce a surplus. G

Fiscal Policy A closer Look at Fiscal Policy 4. In the 1960's the U.S economy faced inflationary pressures. Assume that in 1968 there was an AD Excess of $190 billion. Assume the MPC-95 (All the following problems require mathematical calculations.) a. What change in government expenditures would you have recommended?

i need the answer quickly

Solve question number 1 only.  Choose correct option with explanation. Correctly solve it. If you know answer then only solve

Fiscal Policy: Recessionary vs Expansionary Policy Complete the following exercises. 1. Describe a policy measure the government can use to close a recessionary gap. 2. Illustrate your response to question 1 in a graph. 3. Describe a policy measure the government can use to close an inflationary gap. 4. Please Illustrate Graphically in response to question (question 3: Describe a policy measure the government can use to close an inflationary gap.)