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What does the concept of multiplier mean in the context of determination of national income? Algebraically demonstrate how it is affected by changes in the
What does the concept of "multiplier" mean in the context of determination of national income? Algebraically demonstrate how it is affected by changes in the marginal propensity to consume and tax rate (show the steps in deriving the relationships).
Explain the meaning of unintended inventory changes. Graphically show its role in the determination of stable equilibrium output/income.
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