Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
NYC NYC
wrote...
Go to Answer
Posts: 4146
Rep: 0 0
8 years ago
You are hired by the Council of Economic Advisors (CEA) as an economic consultant. The chairperson of the CEA tells you that she believes the current unemployment rate is too high. The unemployment rate can be reduced if aggregate output increases. She wants to know what policy to pursue to increase aggregate output by $400 billion. The best estimate she has for the MPC is 0.8. Which of the following policies should you recommend?
A) reduce taxes by $100 billion
B) increase government purchases by $100 billion
C) reduce the budget deficit by $400 billion
D) reduce taxes by $100 billion and to increase government purchases by $50 billion
Textbook 
Principles of Macroeconomics

Principles of Macroeconomics


Edition: 11th
Authors:
Read 145 times
2 Replies
Replies
Answer verified by a subject expert
JesslynJesslyn
wrote...
#1
Top Poster
Posts: 2058
Rep: 45 0
8 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

NYC Author
wrote...
#2
8 years ago
I was thinking the same, thank you
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1379 People Browsing
 126 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 265
  
 92
  
 109
Your Opinion
Who will win the 2024 president election?
Votes: 3
Closes: November 4
Previous poll results: Do you believe in global warming?