Top Posters
Since Sunday
25
13
11
9
5
l
4
4
R
4
M
4
k
4
w
3
M
3
New Topic  
NYC NYC
wrote...
Posts: 4146
Rep: 0 0
5 years ago
You are hired by the Bureau of Economic Analogies (BEA) as an economic consultant. The chairperson of the BEA tells you that he believes the current unemployment rate is too high. The unemployment rate can be reduced if aggregate output increases. He wants to know what policy to pursue to increase aggregate output by $200 billion. The best estimate he has for the MPC is 0.6. Which of the following policies should you recommend?
A) reduce the budget deficit by $200 billion
B) increase taxes by $133.33 billion
C) increase government spending by $80 billion
D) reduce taxes by $150 billion and to decrease government spending by $100 billion
Textbook 

Principles of Macroeconomics


Edition: 11th
Authors:
Read 221 times
4 Replies
Replies
Answer verified by a subject expert
JesslynJesslyn
wrote...
Top Poster
Posts: 4114
5 years ago
Sign in or Sign up in seconds to unlock everything for free
More questions for this book are available here
C
1

Related Topics

NYC
wrote...
5 years ago
Thanks for answering Slight Smile
wrote...
5 years ago
You're very welcome!
wrote...
A month ago
Thanks!
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  245 People Browsing
 499 Signed Up Today
Your Opinion
How often do you eat-out per week?
Votes: 10

Related Images
 128