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- Suppose that the economy is in the midst of a recession and government policy makers want to increase aggregate demand by $600 billion.If the economy's marginal propensity to consume is 0.75 and there is no crowding out, the government should do which of the following?
- Which of the following would cause the short-run aggregate supply curve to shift to the right?
- If the marginal propensity to consume is 0.75, then a $100 increase in investment will result in a maximum increase in equilibrium real gross domestic product of
- If the federal government decreases its expenditures on goods and services by $10 billion and decreases taxes on personal incomes by $10 billion, which of the following will occur in the short run?