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lesya [120]
3 years ago
13

. Initially, the economy is in long-run equilibrium. The aggregate demand curve then shifts $50 billion to the left. The governm

ent wants to change its spending to offset this decrease in demand. The MPC is 0.80. Suppose the effect on aggregate demand from a change in taxes is 4/5 the size of the change from government expenditures. There is no crowding out. What should the government do if it wants to offset the decrease in aggregate demand?
Business
1 answer:
Romashka [77]3 years ago
3 0

Answer

the correct answer is

Reduce taxes by $5.56 billion dollars. Increase expenditures by $5.56 billion dollars.

good luck ❤

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The answer is C. Inflation

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It's provided a statistic that is designed to compare the prices while separating the inflation as a factor
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What is the minimum monthly gross income you need to be able to afford the above and still save $100 a month? set all to zero ex
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3 years ago
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