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If the MPC in an economy is 0.75, government could shift the aggregate demand curve leftward by $30 billion by
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- If the MPC in an economy is 0.7, the government could shift the aggregate demand curve rightward by $40 billion by changing government purchases by $billion. Your Answer:If the MPC is 0.80, then an initial decrease of taxes of $100 billion will eventually shift the aggregate demand curve to the right byIf the MPC in the economy is 0.75, the government could shift the aggregate demand curve rightward by $30 billion by cutting taxes by $10 billion. True False
- If the MPC in an economy is 0.7, the government could shift the aggregate demand curve rightward by $30 billion by changing government purchases by $billion. Your Answer: AnswerIf the MPC in an economy is 0.9, a $4 billion increase in government spending will ultimately increase consumption bySuppose that the MPC is 0.8 and the government spends an extra $10 billion. How much will the aggregate demand curve shift as a result?
- If taxes increases from $100 billion to $139 billion, and the MPC is 0.8, how much is the change in aggregate demand?Given an MPC of .8 and an increase in government spending of 5 The aggregate supply curve will shift to the right by 20 The aggregate supply curve will shift to the left by 20 The aggregate supply curve will shift to the right by 5 The aggregate supply curve will shift to the left by 5 None of the aboveIf the MPC in an economy is 0.80, government could shift the aggregate demand curve leftward by $48 billion by Multiple Choice *increasing taxes by $12 billion *Reducing government expenditures by $4 billion *Increasing taxes by $9.6 billion *reducing government expenditures by $48 billion.
- How can a reduction in Corporation Tax lead to supply side improvements in an economy?If the MPC in an economy is 0.90, a $4 billion increase in government spending will ultimately increase real GDP byIf the MPC in an economy is 0.75, government could shift the aggregate demand curve leftward by $60 billion by:( please explain as well ) A) reducing government expenditures by $12 billion. B) reducing government expenditures by $60 billion. C) increasing taxes by $15 billion. D) increasing taxes by $20 billion.