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Hi, please may you explain this step by step and show the formulas used and an explanation of each variable , thank you! a)Assume that
Hi, please may you explain this step by step and show the formulas used and an explanation of each variable , thank you!
a)Assume that private consumption is 60% of GDP and private consumption increases 3%. By how much (in percentage terms) will aggregate demand change?
(b)Assume that private investment is 20% of GDP and private investment increases 5%. By how much (in percentage terms) will aggregate demand change?
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