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Author Question: The leader of Atlantis hires you as an economic consultant. He is concerned that the output level in ... (Read 75 times)

asd123

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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


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Marked as best answer by asd123 on Apr 19, 2019

JYan

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asd123

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Reply 2 on: Apr 19, 2019
YES! Correct, THANKS for helping me on my review


chjcharjto14

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Reply 3 on: Yesterday
Excellent

 

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