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What fiscal policy would you recommend to eliminate

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1. What fiscal policy would you recommend to eliminate the inflationary or recessionary gap in the following scenarios? You must show your calculations to get full credit.a. Recessionary gap of $800 with a marginal propensity to consume of 0.5.b. Inflationary gap of $1,500 with a marginal propensity to consume of 0.8.c. Potential GDP is $10,200, real GDP is $9,000, and the marginal propensity to consume is 0.2 

Reference no: EM13974833

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