Questions 49 - 50: For each of the following, assume the economy is currently at

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Questions 49 - 50: For each of the following, assume the economy is currently at the equilibrium level of real GDP. Suppose you are asked to provide a solution for the American President to the following problems: 49. The economy is currently producing $100 BELOW where she would like the level of Real GDP to be. What type of expenditure gap is present? Assume the MPC for everyone in the economy is .80 and propose a Keynesian spending solution by the federal government (give dollar amount and direction). 50.The economy is currently producing $60 ABOVE where she would like the level of Real GDP to be. What type of expenditure gap is present? Assume the MPC for everyone in the economy is .75 and propose a Keynesian spending solution by the federal government (give dollar amount and direction).

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