Suppose that the MPC is 0.8 and that $17 trillion of real GDP is currently being demanded.
Question:
Suppose that the MPC is 0.8 and that $17 trillion of real GDP is currently being demanded. The government wants to increase real GDP demanded to $18 trillion at the given price level. By how much would it have to increase government spending to achieve this goal?
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The simple spending multiplier is 5 If gov...View the full answer
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Related Book For 
Economics A Contemporary Introduction
ISBN: 9781305505469
11th Edition
Authors: William A. McEachern
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