Moving into the following year, policy makers wanted to see…
Moving into the following year, policy makers wanted to see Real GDP increase by $100,000,000. What might you have told them to do if the MPS is .10? What policy is this? What type of this specific policy are you using? What is the goal you are looking to achieve? How large should the policy measure be? In order to receive full credit, you should include the MPC, Fiscal Multiplier and dollar amount of the policy in support of your answers above. Additionally, if you can accurately explain this using the AD/AS model framework, additional credit may be awarded.