Question
In the simple Keynesian model with no government or foreign sectors, assume that the economy is in equilibrium at an output level of $2 billion
In the simple Keynesian model with no government or foreign sectors, assume that the economy is in equilibrium at an output level of $2 billion with a marginal propensity to consume of 0.9. If investment spending decreases by $0.05 billion, what is the new equilibrium output level?
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Fundamentals of Cost Accounting
Authors: William N. Lanen, Shannon Anderson, Michael W Maher
6th edition
1259969479, 1259565408, 978-1259969478
