Question
Troll Island is a small island nation that recently experienced an autonomous change in aggregate expenditures (AE). AE increased by2 2billion, and the marginal propensity
Troll Island is a small island nation that recently experienced an autonomous change in aggregate expenditures (AE). AE increased by2
2billion, and the marginal propensity to consume on Troll Island is equal to0.6
0.6.
What is the change in Troll Island's real GDP after the increase in AE? Enter your answer in billions of dollars, rounded to one place after the decimal. For example, an answer of $2,500,000 should be entered as 2.5.
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Economics of Money, Banking and Financial Markets
Authors: Frederic S. Mishkin
9th Edition
978-0321607751, 9780321599797, 321607759, 0321599799, 978-0321598905
