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Suppose that in the figure to the right, the MPC is equal to 0.85. In addition. the amount of the horizontal leftward shift from AD2
Suppose that in the figure to the right, the MPC is equal to 0.85. In addition. the amount of the horizontal leftward shift from AD2 to AD3 caused by a crowding-out effect on planned investment spending was $0.40 trillion, or $400 billion. How much investment spending was crowded out? The amount of investment spending that must be crowded out to shift the AD curve leftward by $400 billion is $|:| billion. (Enter your response rounded to two decimal places.) Real GDP per Year ($ trillions)
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