Assume the United States economy has the following:

GDP is $16,000 billion down from $16,350 billion eight months ago.

Unemployment is at 7.4% up from 5.7% six months ago.

Inflation is stable at 1.7%.

MPC=.75

NRU=5%

Should the government cut taxes or increase spending or some combination of both to address the problem? I need help with a detailed explanation of this question.

answer

watching

views

For unlimited access to Homework Help, a Homework+ subscription is required.

You have 0 free answers left.
Get unlimited access to 3.8 million step-by-step answers.

Get unlimited access

Already have an account? Log in

Darryn D'SouzaLv10

28 Sep 2019

Unlock all answers

Get 1 free homework help answer.

Already have an account? Log in

Related questions

Assume the United States economy has the following:

GDP is $16,000 billion down from $16,350 billion eight months ago.

Unemployment is at 7.4% up from 5.7% six months ago.

inflation is stable at 1.7%.

1. Government could address the problem by either increasing government spending, cutting taxes, or both. If the government decided to increase spending to address the problem, how much should spending be increased? If the government decided to cut taxes to address the problem, by how much should tax be cut?

2. Should the government cut taxes or increase spending or some combination of both to address the problem?

3. What could happen to make the policy you recommended ineffectively?

apricottortoise126

Fiscal policy assume the U.S economy has the following GDP is 18,500 billion down from 19,350 nine months ago. Unemployment is at 6.8% up from 4.2% nine months ago. inflation is stable at 2.0% MPC+.75... NRU=4.0% and target inflation is 2,0%.. how do you figure this out using OKUN"S law p;ease help calculate?? ALSO NEED TO RECALCULATE MY GOVERMENT SPENDING AND TAX CUT,,,,,, TO MAKE SURE THE INCREASED GOVERMENT SPENDING AND HOUSEHOLD SPENDING DIDN.T LEAD TO A RESULT OF A GREATER GAP, PLEASE EXPLAIN