Solved

Refer to the Following Figure to Answer the Following Questions

Question 154

Multiple Choice

Refer to the following figure to answer the following questions. Refer to the following figure to answer the following questions. -According to the figure,and assuming the marginal propensity to consume is 0.75,to shift aggregate demand enough to be back at long-run equilibrium,the government would have to increase government spending by A) $20 billion. B) $10 billion. C) $5 billion. D) $1 billion. E) $500 million.
-According to the figure,and assuming the marginal propensity to consume is 0.75,to shift aggregate demand enough to be back at long-run equilibrium,the government would have to increase government spending by


A) $20 billion.
B) $10 billion.
C) $5 billion.
D) $1 billion.
E) $500 million.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q149: A government might want to reduce aggregate

Q150: Contractionary fiscal policy occurs when the<br>A) government

Q151: Automatic stabilizers<br>A) are government programs that automatically

Q152: Which of the following fiscal policy initiatives

Q153: The x axis for the Laffer curve

Q155: Give two examples of fiscal policy initiatives

Q156: Congress and the president would conduct contractionary

Q157: Typical fiscal policy focuses squarely on<br>A) aggregate

Q158: Recognition lag,implementation lag,and impact lag are all

Q159: Income tax revenue is calculated by<br>A) tax