Alpha Geek

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    Polytechnic State University Sanluis
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    Polytechnic State University
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Category > Accounting Posted 28 Apr 2017 My Price 2.00

Suppose the price level is fixed

Suppose the price level is fixed, the MPC is .8, the GDP gap is a negative $200 billion. To achieve full-employment output (exactly), government should:
A. increase government expenditures by $200 billion.
B. reduce taxes by $200 billion.
C. increase government expenditures by $40 billion.
D. reduce taxes by $160 billion

Answers

Alpha Geek
(8)
Status NEW Posted 28 Apr 2017 08:04 AM My Price 2.00

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Attachments

file 1493369144-Answer.docx preview (91 words )
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