Problem
Calculate equilibrium GNP for an economy in which planned gross investment is $200 billion; expected government expenditures are $300 billion; expected taxes are $250 billion; consumption at zero disposable income is $50 billion; and the MPC is constant at 4/5. If full employment GNP is $1800 billion, what government expenditure policy would you suggest?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.