3. Suppose government finds it can increase the equilibrium real GDP $45 billion by increasing government purchases by $18 billion. Find MPS . (2 mark)
3. Suppose government finds it can increase the equilibrium real GDP $45 billion by increasing government purchases by $18 billion. Find MPS . (2 mark) 4. Suppose that the level of GDP increased by $150 billion in a private closed economy wh marginal propensity to consume is 7/10. Find the change in aggregate expenditure. De multiplier
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