Initially, the economy is in long-run equilibrium. the aggregate demand curve then shifts $80 billion to the left. the government wants to change spending to offset this decrease in demand. the mpc is 0.75. suppose the effect on aggregate demand of a tax change is 3/4 as strong as the effect of a change in government expenditure. there is no crowding out and no accelerator effect. what should the government do if it wants to offset the decrease in real gdp?

Garfield corporation is considering building a new plant in canada. it predicts sales at the new plant to be 50,000 units at $5.00/unit. below is a listing of estimated expenses. category total annual expenses % of annual expense that are fixed materials $50,000 10% labor $90,000 20% overhead $40,000 30% marketing/admin $20,000 50% a canadian firm was contracted to sell the product and will receive a commission of 10% of the sales price. no u.s. home office expenses will be allocated to the new facility. the contribution margin ratio for garfield corporation is