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Business, 20.12.2019 05:31 gugu1004

Assume that a hypothetical economy with an mpc of 0.8 is experiencing severe recession. a. by how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion? how large a tax cut would be needed to achieve the same increase in aggregate demand? instructions: round your answer to 2 decimal places and enter your answer as a positive number. b. determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt.

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Assume that a hypothetical economy with an mpc of 0.8 is experiencing severe recession. a. by how mu...
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