Author Question: You are hired by the Council of Economic Advisors (CEA) as an economic consultant. The Chairperson ... (Read 56 times)

dbose · **on:** Apr 19, 2019

Question 1

Assume that the
MPC is 0.8. If government purchases increase by $500, equilibrium output ________; and if taxes increase by $500, equilibrium output ________.

◦ increases by $2,500; decreases by $2,000
◦ increases by $4,000; decreases by $3,000
◦ increases by $2,000; decreases by $1,000
◦ increases by $1,600; decreases by $1,200

Question 2

You are hired by the Council of Economic Advisors (CEA) as an economic consultant. The Chairperson of the CEA tells you that she believes the current unemployment rate is too high. The unemployment rate can be reduced if aggregate output increases. She wants to know what policy to pursue to increase aggregate output by $500 billion. The best estimate she has for the
MPC is 0.5. Which of the following policies should you recommend?

◦ increase government purchases by $200 billion
◦ increase government purchases by $250 billion
◦ cut taxes by $200 billion
◦ cut taxes by $200 billion and to increase government purchases by $200 billion

jrpg123456 · **Reply #1 on:** Apr 19, 2019

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

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