Solve it please

View History Bookmarks Tools Window Help X Mind Tap - Cengage Learning X New Tab X O 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 AD2), the short-run aggregate supply curve (SRAS), and the long-run aggregate supply curve (LRAS). The economy is currently at point A. (?) LRAS 132 128 PRICE LEVEL 124 AD 120 AD 112 400 500 TOD 820 500 0 1100 1200 REAL GDP (Billions of dollars) The economy is currently experiencing gap of s billion. In order to close this gap, one option would be for the government to government purchases by $ billion (assuming net taxes do not change). Grade It Now Save & Continue