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ECON MACRO 5th Edition by William McEachern
Edition 5ISBN: 978-1305659094ECON MACRO 5th Edition by William McEachern
Edition 5ISBN: 978-1305659094 Exercise 11
Determine the simple spending multiplier and explain its relevance
(Simple Spending Multiplier) Suppose that the MPC is 0.8 and that $17 trillion of real GdP is currently being demanded. The government wants to increase real GdP demanded to $18 trillion at the given price level. By how much would it have to increase government purchases to achieve this goal?
(Simple Spending Multiplier) Suppose that the MPC is 0.8 and that $17 trillion of real GdP is currently being demanded. The government wants to increase real GdP demanded to $18 trillion at the given price level. By how much would it have to increase government purchases to achieve this goal?
Explanation
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Given the MPC of 0.8, the amount by whic...
ECON MACRO 5th Edition by William McEachern
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