Suppose the MPC in the economy in Figure 10.2 equals 0.5 and the shift from AD₀to AD₁ was caused by a decrease in consumption of $12 billion.What will the total decrease in aggregate demand be (for example,AD₀ to AD₂)as a result of the initial $12 billion decrease? A)$12 billion because there are no multiplier effects associated with a change in consumption. B)$600 billion. C)$24 billion. D)$60 billion.

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The Answer of Suppose the MPC in the economy in Figure 10.2 equals 0.5 and the shift from AD₀to AD₁ was caused by a decrease in consumption of $12 billion.What will the total decrease in aggregate demand be (for example,AD₀ to AD₂)as a result of the initial $12 billion decrease? A)$12 billion because there are no multiplier effects associated with a change in consumption. B)$600 billion. C)$24 billion. D)$60 billion.

Suppose the MPC in the Economy in Figure 10