a. What is the immediate change in the quantity of real GDP demanded? b. In the short
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a. What is the immediate change in the quantity of real GDP demanded?
b. In the short run, does real GDP increase by more than, less than, or the same amount as the immediate change in the quantity of real GDP demanded?
Suppose that the economy is at full employment, the price level is 100, and the multiplier is 2. Investment increases by $100 billion.
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a The immediate change in the quantity of real GDP demanded is determined by the multiplier effect o...View the full answer
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