Question: Please help me with my ap macroecon questions Sample Fiscal Policy Problem #1 1. What type of gap? 2. To close the gap the government

 Please help me with my ap macroecon questions Sample Fiscal Policy

Please help me with my ap macroecon questions

Problem #1 1. What type of gap? 2. To close the gap

Sample Fiscal Policy Problem #1 1. What type of gap? 2. To close the gap the government could spending or taxes on consumers rice Level LRAS AS Assume the MPC is 0.5: 3. How much should the government change spending to close the gap? PL 4. How much should the government change taxes to close the gap? AD $60 $100 Real GDP (billions) Now assume that the MPC is 0.8: 5. How much should the government change spending to close the gap? 6. How much should the government change taxes to close the gap? Sample Fiscal Policy Problem #2 1. What type of gap? 2. To close the gap the government could ce Level spending or taxes on consumers Assume the MPS is 0.1: AS 3. How much should the government change spending to close the gap? PL AD 4. How much should the government change taxes to close the gap? $100 $120 Real GDP (billions) Now assume that the MPS is 0.2: 5. How much should the government change spending to close the gap? 6. How much should the government change taxes to close the gap

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