Question
Use the following information on economy X to answer the questions below. Marginal propensity to consume (c) = 0.6 Investment= 300 million Autonomous consumption =
Use the following information on economy X to answer the questions below.
Marginal propensity to consume (c) = 0.6
Investment= 300 million
Autonomous consumption = 120 million
4.2.1 Calculate the multiplier for economy X.
Use the multiplier calculated in Q.4.2.1 to calculate the equilibrium income
for economy X.
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Mostly Harmless Econometrics An Empiricist's Companion
Authors: Joshua Angrist
1st Edition
1400829828, 9781400829828
