Use both numerical and graphical methods to find the multiplier effect of the following shift in the

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Use both numerical and graphical methods to find the multiplier effect of the following shift in the consumption function in an economy in which investment is always $220, government purchases are always $100, and net exports are always -$40.

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Macroeconomics Principles And Policy

ISBN: 9780324586213

11th Edition

Authors: William J. Baumol, Alan S. Blinder

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Question Posted: Sep 01, 2012 02:45 AM

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Use both numerical and graphical methods to find the multiplier effect of the following shift in the

Question:

Consumption Consumption Income beoe Shift fter Shift $1,080 880 920 960 960 1,000 1,260 1,000 1,040 1,320 1,040 1,080 1,380 1,0801,120 1,440 1,1201,160 1,5001,160 1,200 1,560 1,200 1,240 1,140 1,200 920

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Figure The graph above indicates that equilibrium GDP ...View the full answer

Macroeconomics Principles And Policy

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