Author Question: The leader of Atlantis hires you as an economic consultant. He is concerned that the output level in ... (Read 84 times)

asd123 · **on:** Apr 19, 2019

The leader of Atlantis hires you as an economic consultant. He is concerned that the output level in Atlantis is too low and that this will cause prices to fall. He feels that it is necessary to increase output by $200 billion. He tells you that the
MPC in Atlantis is 0.8. Which of the following would be the best advice to give to the Atlantis president?

◦ reduce government spending by $100 billion
◦ decease taxes by $50 billion
◦ increase government spending by $200 billion
◦ increase government spending by $100 billion

JYan · **Reply #1 on:** Apr 19, 2019

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