Complete the following table by calculating the value of the multiplier and identifying the change in Y*
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Value of Change in spending Change in MPC multiplier Y* AC = + $50 million 0.5 Al =- $10 million 0.6 AC = - $25 million 0.75 Al = + $20 million 0.8 AC = - $2.5 million 0.9
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Related Book For
Macroeconomics
ISBN: 978-1319120054
3rd Canadian edition
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
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