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Assume that a hypothetical economy with an mpc of 0.75 is experiencing severe recession. a. by how much would government spending have to rise to shift the aggregate demand curv…

Assume that a hypothetical economy with an mpc of 0.75 is experiencing severe recession. a. by how much would government spending have to rise to shift the aggregate demand curv…
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Assume that a hypothetical economy with an mpc of 0.75 is experiencing severe recession.

a. by how much would government spending have to rise to shift the aggregate demand curve rightward by $50 billion?

User Dave McClelland
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The answer for this question would be $5 billion. hope this helps
User Lucas Van Dongen
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