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Suppose the consumption function is C = $500 billion + 0.8Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially (before multiplier effects) with
(a) A $50 billion increase in government purchases? $ billion
(b) A $50 billion tax cut? $ billion
(c) A $50 billion increase in income transfers? $ billion
What will the cumulative AD shift be for:
(d) The increased government spending? $ billion
(e) The tax cut? $ billion
(f) The increased transfers? $ billion
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workplace trends amp future of performance managementthe discussion questions addressed in this solution1. evaluate
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