Assume that the marginal propensity to consume is 0.75, net exports decline by $10 billion, and government spending increases by $20 billion. Given that there is no crowding out, the equilibrium gross domestic product can increase by a maximum of

Role in the economy can be broken down into two basic sets of functions. it attempts to promote economic stability and growth, and it attempts to regulate and control the economy. The federal government regulates and controls the economy through numerous laws affecting economic activity.