In 2021, Real GDP in Canada increased by $137 billion and consumption spending increased by $71billion .

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a. What do these data suggest was the marginal propensity to consume?

b. If real income increases by $100billion in 2022, use this estimate of the marginal propensity to consume to predict how consumption spending will change in 2022.

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Principles Of Macroeconomics

ISBN: 9781982166649

1st Canadian Edition

Authors: Betsey Stevenson, Justin Wolfers, Philip Oreopoulos, Kevin Milligan

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Question Posted: Nov 13, 2024 04:01 AM

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In 2021, Real GDP in Canada increased by $137 billion and consumption spending increased by $71billion .

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Principles Of Macroeconomics

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