Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign a How much does aggregate demand need to change to restore the economy to its long-run equilibrium? 160 billion b. If the MPC is 0.8, how much do taxes need to change to shift aggregate demand by the amount you found in part a? billion Suppose instead that the MPC is 0.75. c. How much does aggregate demand and taxes need to change to restore the economy to its long-run equilibrium? Aggregate demand needs to change by $ 160 billion and taxes need to change by $ billion.

Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign a How much does aggregate demand need to change to restore the economy to its long-run equilibrium? 160 billion b. If the MPC is 0.8, how much do taxes need to change to shift aggregate demand by the amount you found in part a? billion Suppose instead that the MPC is 0.75. c. How much does aggregate demand and taxes need to change to restore the economy to its long-run equilibrium? Aggregate demand needs to change by $ 160 billion and taxes need to change by $ billion.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 47CTQ: Agricultural price supports result in governments holding large inventories of agricultural...

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