Question: a . By what amount has aggregate demand changed? $ billion b . If the marginal propensity to consume is 0 . 8 0 ,
a By what amount has aggregate demand changed?
$ billion
bIf the marginal propensity to consume is what is the expenditures multiplier?
c By how much will investment demand need to change in order to restore the economy to longrun equilibrium?
$ billion
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
