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Employ expansionary fiscal policy

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Suppose policymakers decide to employ expansionary fiscal policy to close a recessionary gap. Assuming the desired ?Y = 1,500,000 and the MPC = .75, by how much would Government purchases have to be increased in order to shift the AD curve by the desired amount?

What is Y and delta Y? I have been digging through my notes for so long and cannot figure out how to calculate what they want for this problem due to the lack of Y in my notes?

Reference no: EM132417124

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