Calculate the changes in real GDP that would result in each of the following cases: a. Government
Question:
Calculate the changes in real GDP that would result in each of the following cases:
a. Government purchases rise by $7,500, and the MPC is 0.95.
b. Planned investment spending falls by $300,000 and the MPC is 0.65.
c. Export spending rises by $60 billion at the same time that import spending rises by $65 billion, and the MPC is 0.75.
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a If the MPC is 095 then the expenditure multiplier is 20 Therefore t...View the full answer
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Related Book For
Macroeconomics Principles and Applications
ISBN: 978-1111822354
6th edition
Authors: Robert E. Hall, Marc Lieberman
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