Given an economy is currently producing at $1.2T rGDP, natural rGDP is $1.3T, and the MPC is 0.9, then the multiplier for increases in aggregate expenditures is: 10 AA (whole number, no decimals). This means the federal government should increase its expenditures by A (whole number) billion dollars.
Given an economy is currently producing at $1.2T rGDP, natural rGDP is $1.3T, and the MPC is 0.9, then the multiplier for increases in aggregate expenditures is: 10 AA (whole number, no decimals). This means the federal government should increase its expenditures by A (whole number) billion dollars.
Chapter19: The Keynesian Model In Action
Section: Chapter Questions
Problem 8SQ
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