If real gdp is $200 billion, full employment gdp is $500 billion, and the marginal propensity to consume is 0.75, then congress should decrease taxes by $50 billion. increase government purchases by $50 billion. decrease government purchases by $50 billion. decrease taxes by $100 billion. increase government purchases by $300 billion.

The answer is: decrease taxes by $100 billion.

Explanation:

If the real GD is $200 billion, which represents only 40% of full employment GDP, then the government should try to increase consumer spending either by decreasing taxes or increasing government spending, or a combination of both.

In this case, I chose the tax decrease since government have budget limitations and they can only decrease taxes by so much before hitting a deficit. Additionally, when you have a large tax reduction, usually government spending either stays the same or decreases.

If the government decreases taxes by $100 billion, the marginal propensity to consume shall result in a $75 billion increase in consumption. According to the Keynesian Multiplier theory, that $75 billion should generate additional production, creating a virtuous cycle that should increase the real GDP in a larger proportion.

4. technological

Explanation:

Technological forces are such forces which influence the technological developments on consumers, businesses, and society in general. Technological forces can improve better communication and management information systems. Therefore, when we scan the environment, we can find online energy management and consumer-generated energy. Therefore, D is the correct answer.