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Suppose that current equilibrium level of aggregate income is $500 trillion while full employment level of income is $600 trillion. If the MPC is 4/5,
Suppose that current equilibrium level of aggregate income is $500 trillion while full
employment level of income is $600 trillion. If the MPC is 4/5, how much would
investment spending need to increase or decrease for the equilibrium level of
income to equal the full employment level?
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