Answered: When price level is considered, the…

When price level is considered, the value of the multiplier will be less than that suggested by the over simplified version of multiplier. Why?

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section9.B: The Multiplier With Variable Imports

Problem 3TY

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When price level is considered, the value of the multiplier will be less than that suggested by the over simplified version of multiplier. Why?

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