pls solve for C and D, please let it be correct In each of the following cases, calculate the spending multiplier and determine the size and shift of each fiscal policy on the AD (aggregate demand)...


pls solve for C and D, please let it be correct



In each of the following cases, calculate the spending multiplier and determine the size and shift of each fiscal policy on the AD (aggregate demand) curve.
a. Government increases spending by $4 billion in an economy with a MPW of 0.7
b. Government spending decreases by $2 billion in an economy with a MPC of 0.65.
c. Government increases taxes by $3 billion in an economy with a MPW of 0.35
d. A $5 billion tax cut causes an initial increase in spending of $1.5 billion.



Jun 10, 2022
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