Suppose that the economy is at full employment, the price level is 100, and the multiplier is
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Suppose that the economy is at full employment, the price level is 100, and the multiplier is 2. Investment increases by $100 billion.
What is the change in equilibrium expenditure if the price level remains at 100?
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The initial change in equilibrium expenditure is 200 billion The ...View the full answer
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Related Book For
Macroeconomics Canada In The Global Environment
ISBN: 9780321931207
9th Edition
Authors: Michael Parkin, Robin Bade
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