If the marginal propensity to consume is 0.75 and there is a $10 million decrease in investment spending, the aggregate demand curve will shift…

right by $10 million.

C) Left by $10 million

D) Left by $40 million

Q8. If the economy is growing beyond potential real GDP (Inflationary gap), which of the following

would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply

(potential/full employment output)?

A) An increase in the money supply and a decrease in interest rates.

B) An increase in government purchases.

C) An increase in oil prices.

D) An increase in taxes.

Q9.For a model economy, the mpc (marginal propensity to consume) is 0.8

Current GDP is $60 million. Potential GDP is $100 million. To reach full employment (overcome

recessionary gap), government spending must

A) decrease by $40 million

B) increase by $8 million

C) decrease by $8 million

D) Increase by $40 million

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10