Exhibit 17-3
-According to Exhibit 17-3,if we assume the MPC is 0.8,then a shift in the AD curve from AD₀ to AD₃ would require an increase in government spending of:
A) $15 billion.
B) $30 billion.
C) $150 billion.
D) greater than $30 billion to allow for inflation.
E) less than $30 billion to allow for inflation.
Correct Answer:
Verified
Q27: Exhibit 17-3 Q28: Which of the following is not an Q29: Automatic stabilisers are: Q31: When the government levies a $100 million Q33: Automatic stabilisers tend to stabilise the level Q33: A decrease in real GDP would affect Q34: Because of the automatic stabilisers, a decline Q36: When the economy enters a prosperity phase,unemployment Q39: Assume Parliament enacts a $10 billion increase Q123: Personal income taxes:
A) state expenditures and revenues.
B)
A) make recessions and inflationary
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