At an initial point on the aggregate demand curve, the price level is 100, and real GDP

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At an initial point on the aggregate demand curve, the price level is 100, and real GDP is $15 trillion. After the price level rises to 110, however, there is an upward movement along the aggregate demand curve, and real GDP declines to $14 trillion. If total autonomous spending declined by $200 billion in response to the increase in the price level, what is the marginal propensity to consume in this economy?
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Economics Today

ISBN: 978-0132554619

16th edition

Authors: Roger LeRoy Miller

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