Question: is this correct? mework (CH 09) The first economy's MPC is 0.5. Therefore, its initial total expenditure line has a slope of 0.5 and passes

is this correct?

is this correct? mework (CH 09) The first economy's MPC is 0.5.

mework (CH 09) The first economy's MPC is 0.5. Therefore, its initial total expenditure line has a slope of 0.5 and passes through the point (100, 100). The second economy's MPC is 0.75. Therefore, its initial total expenditure line has a slope of 0.75 and passes through the point (100, Now, suppose there is a decrease of $20 billion in investment in each economy. Place a green line (triangle symbol) on each of the previous graphs to indicate the new total expenditure line for each economy. Then point (plus symbol) on each graph showing the new level of equilibrium output. (Hint: You can see the slope and vertical axis intercept the graph by selecting it.) MPC=0.5 3100 45-Degree Line A TOTAL EXPENDITURE (Billions of dollars) 180 New AE Line 140 + Now Equilibrium AE Line X W P 888 DD

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