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Before COVID-19, households used to spend 0.88 dollars with a $1 increase in their income. However, due to the economy-wide lockdown, now households only spend
Before COVID-19, households used to spend 0.88 dollars with a $1 increase in their income. However, due to the economy-wide lockdown, now households only spend 0.55 dollars with a $1 increase in their income. In order to boost the economy during the pandemic, the government is considering to spend $1,202. In this case, the amount of rightward shift in aggregate demand during pandemic as a result of $1,202 government spending decreased by $______________
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