Economics for Today 9th Edition by Irvin Tucker

تمرين 22

Suppose the economy in Exhibit 12 is in equilibrium at point E 1 and the marginal propensity to consume (MPC) is 0.75. Following Keynesian economics, to lower the price level from 170 to 150, the government should reduce its spending by
A) $20 billion.
B) $100 billion.
C) $133 billion.
D) $400 billion.
EXHIBIT 12 Aggregate Demand and Supply Model