Question
20. If investment spending increases by $20 million in an economy with a MPC of .8, what is the change in real GDP? 21. If
20. If investment spending increases by $20 million in an economy with a MPC of .8, what is the change in real GDP?
21. If investment spending increases by $25 million in an economy with a MPC of .75, what is the change in real GDP?
22. If real GDP increased by $100 million because of a $10 million dollar increase in investment spending, what is the size of the multiplier?
23. In an economy with a MPC of .5 there is a change in real GDP of $800 million as a result of increased investment spending. How much was the change in spending that resulted in the situation described?
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Managerial economics
Authors: william f. samuelson stephen g. marks
7th edition
9781118214183, 1118041585, 1118214188, 978-1118041581
