How much will the aggregate demand at current prices

Reference no: EM13181485

Suppose the consumtion function is ( C = $500 billion + 0.9Y) and the government wants to stimulate the economy. By how much will the aggregate demand at current prices shift intially (before multiplier effects) with

(a) A 50 billion dollar increase in government purchase?

(b) A 50 billion dollar tax cut?

( c) A $50 billion dollar increase in income transfer?

Reference no: EM13181485

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