Question
An economy is having a marginal propensity (MPC) of 0.6 and current national income is 5,000. (i) Calculate the government purchase multiplier and the new
An economy is having a marginal propensity (MPC) of 0.6 and current national income is 5,000. (i) Calculate the government purchase multiplier and the new national income when the government increases government purchases by 300. (ii) Illustrate your answer in (i) and (ii) using the Keynesian cross.
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International Economics
Authors: Thomas A. Pugel
15th edition
73523178, 978-0077769529, 007776952X, 978-0073523170
