Advanced Placement (AP), 18.07.2019 20:30 andybiersack154
If real gdp is $200 billion, full employment gdp is $500 billion, and the marginal propensity to consume is 0.75, then congress should
a. 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.
Answers: 1
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If real gdp is $200 billion, full employment gdp is $500 billion, and the marginal propensity to con...
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