Where marginal propensity to consume is denoted as MPC,consider the following:

a.Assuming no crowding-out and MPC = 0.75, calculate the amount of government spending needed to bring this economy back to full employment output.
b.Assuming no crowding-out and that $10 billion would be needed to bring this economy back to full employment output, calculate the MPC in this economy.

Question

Where marginal propensity to consume is denoted as MPC,consider the following:
  
a.Assuming no crowding-out and MPC = 0.75, calculate the amount of government spending needed to bring this economy back to full employment output.
b.Assuming no crowding-out and that $10 billion would be needed to bring this economy back to full employment output, calculate the MPC in this economy.

Quizplus · Accepted Answer

The Answer of Where marginal propensity to consume is denoted as MPC,consider the following:
  
a.Assuming no crowding-out and MPC = 0.75, calculate the amount of government spending needed to bring this economy back to full employment output.
b.Assuming no crowding-out and that $10 billion would be needed to bring this economy back to full employment output, calculate the MPC in this economy.

Where Marginal Propensity to Consume Is Denoted as MPC,consider the Following