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The multiplier effect: Suppose that a newly released popular hit by a US rock group causes fans in Asia to order $50,000 worth of American-made
The multiplier effect: Suppose that a newly released popular hit by a US rock group causes fans in Asia to order $50,000 worth of American-made T-shirts with the band's picture. Other things being equal, would this tend to increase planned expenditure in the United States by exactly, more than, or less than $50,000? Would it shift the aggregate demand curve to the right, the left, or not at all? Explain in detail.
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