Business, 18.11.2019 23:31 belle200163

Assume that the full-employment level of output is $500 and the price level associated with full-employment output is 100. also assume that the economy's current level of output is $450 and, at the price level of 100, current aggregate demand is $400. if the government wants to move the economy back to the full-employment level of output and the mpc is 0.75, then it should

reduce government purchases by $100.

increase government purchases by $100.

reduce government purchases by $25.

increase government purchases by $25.

7.) assume that the full-employment level of output is $2,000 and the price level associated with full-employment output is 100. also assume that the economy's current level of output is $1,900 and at the price level of 100 current aggregate demand is $1,820. if the government moves the economy back to the full-employment level of output by reducing taxes by $60, then the mpc equals

0.8.

0.75.

0.6.

0.5.

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Assume that the full-employment level of output is $500 and the price level associated with full-emp...