(TCOs E and F) Answer Parts A, B, and C completely. , economics homework help

(TCOs E and F) Answer Parts A, B, and C completely.

(Part A) Evaluate the fundamental arguments between Keynesians and

Monetarists concerning the level of government involvement in our

economy to minimize the impact and stabilize the different stages of the

business cycle.

(Part B) Any change in the economy’s total expenditures would be

expected to translate into a change in GDP that was larger than the

initial change in spending. This phenomenon is known as the multiplier effect. Explain how the multiplier effect works.

(Part C) You are told that 90 cents out of every extra dollar

pumped into the economy goes toward consumption (as opposed to saving).

Estimate the GDP impact of a positive change in government spending that

equals $8 billion.