(Solution) If Real GDP Is \$400 Billion, Full Employment GDP Is \$800 Billion, And The Marginal Propensity To Consume Is 0.5, Then Congress Should A. Decrease... | Snapessays.com

(Solution) If real GDP is \$400 billion, full employment GDP is \$800 billion, and the marginal propensity to consume is 0.5, then Congress should a. decrease...

1. If real GDP is \$400 billion, full employment GDP is \$800 billion, and the marginal propensity to consume is 0.5, then Congress should a. decrease taxes by \$200 billion.b. increase taxes by \$400 billion. c.increase purchases by an amount slightly more than \$200 billion.d. increase purchases by \$200 billion.e. increase purchases by \$400 billion.2.If real GDP is \$200 billion, full employment GDP is \$500 billion, and the marginal propensity to consume is 0.75, then Congress shoulda. decrease taxes by \$50 billion. b.increase government purchases by \$50 billion. c.decrease government purchases by \$50 billion. d.decrease taxes by \$100 billion.e. increase government purchases by \$300 billion.3.If real GDP is \$400 billion, full employment GDP is \$500 billion, and the marginal propensity to consume is 0.5, then Congress should a. decrease taxes by \$50 billion. b. increase taxes by \$100 billion.  c.increase purchases by an amount slightly more than \$50 billion. d. increase purchases by \$50 billion. e. increase purchases by \$100 billion.

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This question was answered on: May 23, 2022

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