If GDP is 3,900, the multiplier is 8, and G falls by 10, what is the new level of GDP?New GDP is $billion.

Multiplier effect shows that the change in GDP will be greater than the change in spending that has…

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If GDP is 3,900, the multiplier is 8, and G falls by 10, wha New GDP is $ billion.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If GDP is 3,900, the multiplier is 8, and G falls by 10, what is the new level of GDP?
New GDP is $
billion.

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