Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 10, Problem 10E
To determine
Use the information in the following table:
What is the MPS?
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draw a AD/ AS diagram to show the effect of raising and increasing intrest, icome tax, corporate tax and government expenditure versus decreasing intrest, income tax, corporate tax and government expenditure.
MPS is 0.48
Calculate MPC
Describe the volatility of government spending and net exports relative to that of GDP and suggest an explanation for the patterns you observe in the graph.
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