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NYC NYC
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8 years ago
Assume that the MPC is 0.8. If government spending increases by $200, equilibrium output ________; and if taxes increase by $200, equilibrium output ________.
A) increases by $800; decreases by $600
B) increases by $1,000; decreases by $800
C) increases by $1,000; decreases by $1,000
D) increases by $1,600; decreases by $1,200
Textbook 
Principles of Macroeconomics

Principles of Macroeconomics


Edition: 11th
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JesslynJesslyn
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NYC Author
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#2
8 years ago
I was thinking the same, thank you
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