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 $400 billion. The best estimate she has for the MPC is 0.8. Which of the following policies should you recommend?
A. reduce the budget deficit by $400 billion
B. reduce taxes by $100 billion and increase government purchases by $50 billion
C. increase government purchases by $100 billion
D. reduce taxes by $100 billion
Answer: D
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U.S. exports
a. represent approximately 50 percent of GDP b. represent approximately 35 percent of GDP c. represent approximately 11 percent of GDP d. consist primarily of agricultural commodities e. consist primarily of metals and other raw materials
Which of the following countries has had the more successful transition?
a. Poland b. Russia c. Kazakstan d. Georgia e. Kyrgystan
Supposing the market price for a price taking firm is known to be $2, the total revenue accruing to it if it sells 100 is ________ and the total revenue accruing to it if it sells 200 is ________.
A. $100; $200 B. $200; $400 C. $2; $2 D. $200; $200
In the U.S., over the past forty years,
A) exports as a percentage of GDP have increased, while imports has a percentage of GDP have decreased. B) exports as a percentage of GDP have decreased, while imports has a percentage of GDP have increased. C) both exports and imports as a percentage of GDP have decreased. D) both exports and imports as a percentage of GDP have increased. E) both exports and imports as a percentage of GDP have remained constant.