Elucidate what will be the desired fiscal stimulus

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Q. A firm with market power has an individual consumer demand of Q =20-4P and costs of C=4Q. What is the optimal price to charge for a block of 20 units?

Q. If the government faces an AD Shortfall of 100 billion dollars and finds that the marginal propensity to consume is 0.8, elucidate what will be the desired fiscal stimulus?

Reference no: EM1347080

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