The government of South Korea announced a $10 billion (11.2 trillion won) fiscal stimulus package. It will
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The government of South Korea announced a $10 billion (11.2 trillion won) fiscal stimulus package. It will increase social welfare subsidies for maternity leave and for the healthcare needs of older people. It will also create new public sector jobs.
If the slope of the AE curve is 0.7, calculate the immediate change in aggregate planned expenditure and the change in real GDP in the short run if the price level remains unchanged.
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