Assume the current equilibrium level of income is $200 billion as compared to the full-employment income level of $240 billion. If the MPC is 0.625, what change in aggregate expenditures is needed to achieve full employment?   Multiple Choice   a decrease of $12 billion   an increase of $25 billion   an increase of $10 billion   an increase of $15 billion

Economics For Today
10th Edition
ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter19: The Keynesian Model In Action
Section: Chapter Questions
Problem 17SQ
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Assume the current equilibrium level of income is $200 billion as compared to the full-employment income level of $240 billion. If the MPC is 0.625, what change in aggregate expenditures is needed to achieve full employment?

 

Multiple Choice
  •  

    a decrease of $12 billion

  •  

    an increase of $25 billion

  •  

    an increase of $10 billion

  •  

    an increase of $15 billion

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