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Econ 4th Edition by William McEachern
Edition 4ISBN: 978-1285423548Econ 4th Edition by William McEachern
Edition 4ISBN: 978-1285423548 Exercise 12
SIMPLE SPENDING MULTIPLIER Suppose that the MPC is 0.8 and that $14 trillion of real GDP is currently being demanded. The government wants to increase real GDP demanded to $15 trillion at the given price level. By how much would it have to increase government purchases to achieve this goal?
Explanation
Verified
Verified
Given information:
MPC = 0.8
Real GDP c...
Econ 4th Edition by William McEachern
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