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.
This question was answered on: May 23, 2022
Solution~00021147720272.zip (25.37 KB)
This attachment is locked
Our expert Writers have done this assignment before, you can reorder for a fresh, original and plagiarism-free copy and it will be redone much faster (Deadline assured. Flexible pricing. TurnItIn Report provided)
Answered
QUALITYApproved
DATE ANSWEREDMay 23, 2022
EXPERTTutor
ANSWER RATING
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
