chapter 30 homework

chapter 30 homework - TWOWRONG 1.

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1. You are given the following information about aggregate demand at the existing price level for  an economy: (1) consumption = $400 billion; (2) investment = $40 billion; (3) government  purchases = $90 billion; and (4) net export = $25 billion. If the full-employment level of GDP  for this economy is $600 billion, then what combination of actions would be most consistent  with the goal of achieving full employment? A) Increase government spending and taxes B) Decrease government spending and taxes C) Decrease government spending and increase taxes D) Increase government spending and decrease taxes 2. Refer to the above data. What year is the budget deficit $250 billion? A) Year 2 B) Year 3 C) Year 4 D) Year 5 3. An economy is experiencing a high rate of inflation. The government wants to reduce  consumption by $36 billion to reduce inflationary pressure. The MPC is .75. By how much  should the government raise taxes to achieve its objective? A) $6 billion
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chapter 30 homework - TWOWRONG 1.

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