Question
Suppose that theMPCis 0.8 and that$18 trillionof real GDP is currently being demanded. The government wants to increase real GDP demanded to$19 trillionat the given
Suppose that theMPCis 0.8 and that$18 trillionof real GDP is currently being demanded. The government wants to increase real GDP demanded to$19 trillionat the given price level. By how much would it have to increase government purchases to achieve this goal?
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Economics of Strategy
Authors: David Besanko, David Dranove, Mark Shanley, Scott Schaefer
6th edition
978-1118273630, 111827363X, 978-1118319185
