Demonstrate graphically the effect of an increase in au-tonomous expenditures when the mpe = .5 and the
Question:
a. In the multiplier model.
b. In the AS/AD model.
c. Do the same thing as in a and b, only this time assume that the SAS curve is upward-sloping.
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a As shown in the lefthand graph below an increase in autonomous expenditures shifts the AE curve up ...View the full answer
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