Suppose That In The Figure To The Right The Government Determined That The Amount By Which The Ad Curve Had To Be Shift 1 (19.84 KiB) Viewed 16 times
Suppose That In The Figure To The Right The Government Determined That The Amount By Which The Ad Curve Had To Be Shift 2 (23.67 KiB) Viewed 16 times
Suppose that in the figure to the right, the government determined that the amount by which the AD curve had to be shifted directly rightward from point E, was equal to $1.01 trillion. If the government decided that a $0.42 trillion increase in real government spending was required to generate this shift, what must be the value of the MPC? The value of the MPC associated with this shift is (Enter your response rounded to two decimal places.) Can
Suppose that in the figure to the right, the government knows that the MPC is equal to 0.84 and that the amount of the horizontal distance that the AD curve had to be shifted directly leftward from point E, was equal to $1.58 trillion. What is the reduction in real government spending required to have generated this shift? Therefore, the reduction in real government spending necessary to shift the AD curve leftward by $1.58 trillion is $ trillion (Enter your response rounded to two decimal places.)
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