Between 2008 and 2009, real disposable income (in 2009 dollars) declined slightly (by $51 billion), owing to
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Between 2008 and 2009, real disposable income (in 2009 dollars) declined slightly (by $51 billion), owing to a recession. Use the data on real consumption expenditures given on the inside back cover of the textbook to compare the change in C to this $51 billion decline in DI. Explain why dividing the two does not give a good estimate of the marginal propensity to consume.
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Related Book For
Economics Principles and Policy
ISBN: 978-1305280595
13th edition
Authors: William Baumol, Alan Blinder
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