Macroeconomics Questions
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Suppose that the economy is in the midst of a recession and government policy makers want to increase aggregate demand by $600 billion.If the economy's marginal propensity to consume is 0.75 and there is no crowding out, the government should do which of the following?
Which of the following would cause the short-run aggregate supply curve to shift to the right?
If the marginal propensity to consume is 0.75, then a $100 increase in investment will result in a maximum increase in equilibrium real gross domestic product of
If the federal government decreases its expenditures on goods and services by $10 billion and decreases taxes on personal incomes by $10 billion, which of the following will occur in the short run?