Are the values of the multipliers in the short run and the long run larger or smaller
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Are the values of the multipliers in the short run and the long run larger or smaller than 2?
Suppose that the economy is at full employment, the price level is 100, and the multiplier is 2. Investment increases by $100 billion.
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The multiplier refers to the effect that a change in one economic variable such as investment has on ...View the full answer
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Related Book For
Microeconomics Canada In The Global Environment
ISBN: 9780321931184
9th Edition
Authors: Robin Bade, Michael Parkin
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