please answer following three questions(a,b,c) to rate your answers thank you. #

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please answer following three questions(a,b,c) to rate your answers thank you. # i won't rate those that seems wrong or unsatisfied one. thank you. 1) The U.S governement has just increased taxes. One concern is that this tax increase will push a relatively fragile economy bank into recession. Let's use the Keynesian Cross to analyze provide some analysis of short-run effects. As a result, you are assuming that investment is not a function of the interest rate. Asssume the marginal propensity to consume is 0.80 and that consumption is a function of disposable income. a) If taxes are increased by $200 billion dollars, show a mathematical calculation of how much real GDP will change. b) Briefly explain(one,two sentence) what happens to consumption when taxes are increased by $200 billion c) Suppose the government decides to change government spending in order to offset the tax increases' effect on output. Calculate how much the government will have to spend,

Explanation / Answer

On 17 September 2012, which was a timely moment during the national debate and congressional negotiations over the

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