a. Compare the change in real GDP in the long run with the increase in investment. b.
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a. Compare the change in real GDP in the long run with the increase in investment.
b. Explain how the price level changes in the long run.
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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Related Book For
Microeconomics Canada In The Global Environment
ISBN: 9780321931184
9th Edition
Authors: Robin Bade, Michael Parkin
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