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You are advising the Prime Minister. The Prime Minister feels that the current unemployment rate is ...

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You are advising the Prime Minister. The Prime Minister feels that the current unemployment rate is ...

You are advising the Prime Minister. The Prime Minister feels that the current unemployment rate is too high and that the unemployment rate can be reduced if aggregate output increases. He/she wants to know what policy to pursue to increase aggregate output by £3 billion. The mpcd is 0.8. Which of the following policies should you recommend?

▸ Increase government spending by £0.6 billion.

▸ Cut taxes by £2.4 billion and to increase government spending by £2.4 billion.

▸ Increase government spending by £2.4 billion.

▸ Cut taxes by £0.6 billion.

Textbook

Essential Economics for Business

Edition: 5^th

Authors: Sloman, Jones

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RNIPP

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More solutions for this book are available here

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Clement Author

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Good timing, thanks!

ediblefruitz

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this is exactly what I needed

Liarec

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This helped my grade so much Perfect

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