subject
Business, 03.03.2022 01:00 zachthomas024

Suppose Kittyville's full-employment GDP = $600 billion, and the current equilibrium GDP = $400 billion. The MPC in this economy = 0. 90. Identify the type of expenditure gap in Kittyville's economy: To correct this gap, Kittyville hires an economist, Kittyzen Keynes, who suggests: government spending or taxes. Decreasing Recessionary Increasing Inflationary Suppose Kittyville decides to change government spending under Keynes' advice. By how much must government spending change to correct for the expenditure gap (rounded to nearest billion dollars)? Suppose Kittyville instead decides to change taxes under Keynes advice. By how much must taxes change to correct for the expenditure gap (rounded to nearest billion dollars)?

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 02:00
True or false: a smart store layout moves customers in and out as fast as possible. a) true b) false
Answers: 2
question
Business, 22.06.2019 11:10
Sam and diane are completing their federal income taxes for the year and have identified the amounts listed here. how much can they rightfully deduct? • agi: $80,000 • medical and dental expenses: $9,000 • state income taxes: $3,500 • mortgage interest: $9,500 • charitable contributions: $1,000.
Answers: 1
question
Business, 22.06.2019 17:00
Dan wants to start a supermarket in his hometown, and wants to get into the business only after finding out about the market and how successful his business might be. the best way for dan to gain knowledge is to:
Answers: 2
question
Business, 22.06.2019 20:20
Fractional reserve banking which of the following statements about fractional reserve banking are correct? check all that apply. fractional reserve banking allows banks to create money through the lending process. fractional reserve banking does not allow banks to hold excess reserves. fractional reserve banking allows banks to create additional wealth by lending some reserves. fractional reserve banking relies on everyone not withdrawing their money at the same time.
Answers: 2
You know the right answer?
Suppose Kittyville's full-employment GDP = $600 billion, and the current equilibrium GDP = $400 bill...
Questions
question
Chemistry, 30.07.2021 01:20
Questions on the website: 13722363