If Japan's government wants to close the above gap by increasing government purchases of goods and...
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If Japan's government wants to close the above gap by increasing government purchases of goods and services (G). Suppose marginal propensity to consumer is 0.75. a. Calculate by how much government needs to increase G in order to close the gap? b. Fill out the blanks in the following table (round up to two decimal points). Yen (billions) Increase in G (government purchases) Second round increase in consumer spending Third round increase in consumer spending Forth round increase in consumer spending ..total increase in real GDP If Japan's government wants to close the above gap by increasing government purchases of goods and services (G). Suppose marginal propensity to consumer is 0.75. a. Calculate by how much government needs to increase G in order to close the gap? b. Fill out the blanks in the following table (round up to two decimal points). Yen (billions) Increase in G (government purchases) Second round increase in consumer spending Third round increase in consumer spending Forth round increase in consumer spending ..total increase in real GDP
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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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