Question
If the MPC in an economy is 0.75 and aggregate expenditures increase by $20 billion, then equilibrium GDP will increase by Multiple Choice $80 billion.
If the MPC in an economy is 0.75 and aggregate expenditures increase by $20 billion, then equilibrium GDP will increase by
Multiple Choice
- $80 billion.
- $5 billion.
- $15 billion.
- $4 billion.
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
