In the Keynesian-cross mo

In the Keynesian-cross mo

In the Keynesian-cross model, if the MPC equals 0.75, calculate the change in plannedexpenditure for $1 billion decrease in lump-sum taxes. Calculate the expendituremultiplier and the change in the equilibrium level of income for $1 billion decrease inlump-sum taxes.Thank you!

%d bloggers like this: