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Explain the marginal propensity to consume and show how it is completed. - Discuss how spending and output influences equilibrium in a simple model where
Explain the marginal propensity to consume and show how it is completed. - Discuss how spending and output influences equilibrium in a simple model where aggregate expenditure =consumption. -How can unplanned inventory influence equilibrium in the model where AE=(C+I+G+(X-M)) -Describe how expenditure multiplier and state how it is computed. How is it different from the Tax multiplier
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