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Exhibit 16A-4 Macro AD\AS Models as Shown in Exhibit

question 34

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Exhibit 16A-4 Macro AD\AS Models Exhibit 16A-4 Macro AD\AS Models   As shown in Exhibit 16A-4, assume the marginal propensity to consume MPC equals 0.75. Using discretionary fiscal policy, federal government spending should be ____ in order to restore the economy from E<sub>1</sub> to full employment. A) increased by $1 trillion B) increased by $2 trillion C) decreased by $2 trillion D) increased by $.50 trillion E) increased by $.80 trillion As shown in Exhibit 16A-4, assume the marginal propensity to consume MPC equals 0.75. Using discretionary fiscal policy, federal government spending should be ____ in order to restore the economy from E1 to full employment.

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Definitions:

Standard Deviation

A measure that is used to quantify the amount of variation or dispersion of a set of values.

Standard Deviation

A metric that calculates the extent of spread or scatter among a collection of data points.

Sampling Distribution

The distribution of a statistic's probabilities, which results from analyzing a random sample.

Standard Deviation

A measure indicating the breadth of spread or variability in a series of values, showing how much the values differ from their mean.

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