Please answer

Edit View History Bookmarks Tools Window Help n In X MindTap - Cengage Learning X New Tab X https:/g.cengage.com/staticb/ui/evo/index.html?deploymentid=583264245 CENGAGE | MINDTAP Aplia Homework: Fiscal Policy Attempts Average / 2 2. Discretionary fiscal policy and multiplier effects Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.5. The following graph shows the aggregate demand curves (AD, and AD, ), the short-run aggregate supply curve (SRAS), and the long-run aggregate supply curve (IRAS). The economy is currently at point A. (?) 140 TURAS 126 GRAS 200 130 132 128 PRICE LEVEL 124 AD. 120 116 112 403 500 70 830 900 1020 1300 1200 REAL GDP (Billions of dollars) The economy is currently experiencing _a recessionary _ gap of $100 billion. In order to close this gap, one option would be for the government to decrease * government purchases by $ billion (assuming net taxes do not change). Grade It Now Save & Continue