Find total change in rgdp if government spending increases, Microeconomics

Find total change in rgdp if government spending increases

1. What is the total change in RGDP if government spending increases by $700 million and the marginal propensity to consume (MPC) is 0.55? Show your work.

2. How much should the government change spending in order to close a $635 million inflationary gap if the MPC is 0.70? Should it increase or decrease spending? How much should it change taxes? Increase or decrease taxes?

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Microeconomics: Find total change in rgdp if government spending increases

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Microeconomics: Find total change in rgdp if government spending increases

Reference No:- TGS0524430

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

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Request for Solution File

Ask an Expert for Answer!!

Microeconomics: Find total change in rgdp if government spending increases

Reference No:- TGS0524430

Recent Questions Asked Microeconomics

Q : Importance of cash management

Q : Thermodynamics related problem

Q : Explain the moral point of view

Q : Include information gleaned from the newspaper

Q : Find total change in rgdp if government spending increases

Q : Different lengths-producing different notes

Q : Company rewards program-legal requirements

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Q : Find effect of policy-price level-unemployment-actual rgdp

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