Fema Employment
To achieve full-employment output (exactly), government should?
Suppose the price level is fixed, the MPC is .8, and the GDP gap is a negative $320 billion. To achieve full-employment output (exactly), government should: 1) increase government expenditures by $320 billion. 2) increase government expenditures by $80 billion. 3) reduce taxes by $320 billion. 4)reduce taxes by $80 billion.
Public Comments
- do your own homework
- The government should do nothing. Government cannot create jobs, it can only take from the productive and give to the unproductive.
