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December 21, 2014

December 21, 2014

Posted by **Marieanne** on Sunday, November 30, 2008 at 12:39am.

2. If C = 500 + 3/4[GDP- 100], I = 300, G = 400, Xn =- 10 and full employment GDP is 210 less than current GDP, the proper action would be to increase taxes by?

- economic -
**economyst**, Monday, December 1, 2008 at 9:08amDo a little research, then take a shot. What do you think?

Hint for 1): find the government spending multiplier: (1/MPS)

Hint for 2): find the taxation multiplier: (1/MPS)-1.

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