The potential GDP of the country is 380 billion euros, and the actual is 240. The marginal propensity to consume is 0.8. Determine the change in government expenditures to get to the equilibrium point:
The potential GDP of the country is 380 billion euros, and the actual is 240. The marginal propensity to consume is 0.8. Determine the change in government expenditures to get to the equilibrium point:
Chapter19: The Keynesian Model In Action
Section: Chapter Questions
Problem 17SQ
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