Why does sras eventually become vertical

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1. If an increase in consumer spending of $10 billion would increase real GDP to $300 billion, what is the marginal propensity to consume?

2. Assume the MP0 was .8 instead. What is the least amount the government could spend to get the real GDP from $200 to $400 billion?

3. Assume the MPC is .5 instead. What is the least amount the government could cut taxes to get the real GDP from $200 to $400 billion?

4. Why does SRAS eventually become vertical?

Reference no: EM133063406

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