Question 36 2.5 Points Given a marginal propensity to consume of 0.80, how much of increase/decrease in Government spending is needed to move the economy to the long run equilibrium (potential output)? Test 3- 2. png Aggregate Price LRAS SRAS Real GDP in Trillions Y= 15 Potential GDP = 25 A 2.5 billions dollars decrease in Government spending. B 2.5 billions dollars increase in Government spending 2 billions dollars increase in Government spending. D 2 billions dollars decrease in Government spending. Question 37 2.5 Points If the marginal propensity to consume is 0.80 and government purchases of goods and services decrease by $25 billion, real GDP will A Goes up by $100 billion. B Goes down by $ 100 billion. Goes up by $125 billion. D Goes down by $125 billion. Question 38 2.5 Points If the marginal propensity to save is 0.10 and government purchases of goods and services decrease by $18 billion, real GDP will: A Go down by $ 180 billion. Go up by $ 180 billion. Go down by $ 200 billion. Go down up $ 200 billion. Question 39 2.5 Points If the marginal propensity to consume is 0.75 and go hat would happen to real GDP? A GDP will go up by $ 30 billion. GDP will go down by $ 30 billion. GDP will go up by $ 40 billion. D GDP will go down by $ 40 billion