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At point A on the aggregate demand curve shown to theright, the price level is100, and real GDP is$12 trillion. After the price level rises
At point A on the aggregate demand curve shown to theright, the price level is100, and real GDP is$12 trillion. After the price level rises to110, however, there is an upward movement along the aggregate demandcurve, and real GDP declines to$11 trillion. If total autonomous spending declined by 250 billion in response to the increase in the pricelevel, the marginal propensity to consume in this economy is...
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