If the ad shortfall is 500 billion and the mpc is 09 a how


If the AD shortfall is $500 billion and the MPC is 0.9

a) How large is the desired fiscal stimulus?

b) How large an income tax cut is needed?

c) Alternatively, how much more government spending would achieve this target?

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Macroeconomics: If the ad shortfall is 500 billion and the mpc is 09 a how
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