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Given an MPC of 0.9, answer the following questions: If government expenditures fall by $500, how much will the aggregate expenditure curve shift?How much would

Given an MPC of 0.9, answer the following questions:

  1. If government expenditures fall by $500, how much will the aggregate expenditure curve shift?How much would equilibrium change?
  2. If taxes fell by $500, by how much will the aggregate expenditure curve shift up?By how much will equilibrium income change?

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