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Business, 11.10.2020 23:01 allieballey0727

Which of the following statements is incorrect?Given the economy's MPS, a $15 billion reduction in government spending will reduce the equilibrium GDP by more than a $15 billion increase in taxes would. If the MPC is 0.8 and GDP has declined by $40 billion, this was caused by a decline in aggregate expenditures of $8 billion. Other things unchanged, a tax reduction of $10 billion will increase the equilibrium GDP by $25 billion when the MPS is 0.4.A government surplus is an anti-inflationary; a government deficit is expansionary.

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Which of the following statements is incorrect?Given the economy's MPS, a $15 billion reduction in g...
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