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Business, 05.11.2019 00:31 vmosley8648

Suppose the consumption function is c = $400 billion + 0.75y and the government wants to stimulate the economy. by how much will aggregate demand at current prices shift initially (before multiplier effects) with

(a) a $70 billion increase in government purchases? $ billion

(b) a $70 billion tax cut? $ billion

(c) a $70 billion increase in income transfers? $ billion

what will the cumulative ad shift be for

(d) the increased government spending? $ billion

(e) the tax cut? $ billion

(f) the increased transfers? $ billion

i've been at this for about four hours now, and i just can't get it. again.

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Answers: 1

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