Question
If a $961 increase in autonomous investment causes a $3,197 increase in GDP, what is the MPS? Potential GDP equals $500 billion. The economy is
If a $961 increase in autonomous investment causes a $3,197 increase in GDP, what is the MPS?
Potential GDP equals $500 billion. The economy is currently producing GDP equal to $450 billion. If the MPC is 0.74, then autonomous spending must change by $_______ billion for the economy to move to potential GDP?
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Economics of Strategy
Authors: David Besanko, David Dranove, Mark Shanley, Scott Schaefer
6th edition
978-1118273630, 111827363X, 978-1118319185
