Need help what formulas are used to answer questions please show step by step Assume the MPC is 0.75 and policy makers have targeted real GDP to decrease by $300 billion. By how much must taxes be increased to achieve this goal? Assume the MPC is 0.70 and the government increases spending on public school programs by $20 billion. What is the value of the initial impact on real GDP? What is the value of the total impact on real GDP?

Need help what formulas are used to answer questions please show step by step Assume the MPC is 0.75 and policy makers have targeted real GDP to decrease by $300 billion. By how much must taxes be increased to achieve this goal? Assume the MPC is 0.70 and the government increases spending on public school programs by $20 billion. What is the value of the initial impact on real GDP? What is the value of the total impact on real GDP?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

ChapterD: The Expenditure-output Model

Section: Chapter Questions

Problem 24CTQ: Exercise D24 Compare two policies: a tax cut on income or an increase in government spending on...

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Exercise D24 Compare two policies: a tax cut on income or an increase in government spending on roads and bridges. What are both the short-term and longâ€”term impacts of such policies on the economy?
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