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Consider the Following Multiplier Model Diagram

Question 28

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Consider the following multiplier model diagram:
Consider the following multiplier model diagram: Demonstrate graphically (and explain your graph)what will happen in the picture when autonomous spending increases.Demonstrate the same in the AD/AS model. Demonstrate graphically (and explain your graph)what will happen in the picture when autonomous spending increases.Demonstrate the same in the AD/AS model.

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An increase in autonomous spending will ...

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