Chat with AI
Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884 Exercise 26
The Multiplier
Obama's New Stimulus
The Obama recovery plan announced on Monday includes proposed spending of $50 billion to rebuild 150,000 miles of roads, construct and maintain 4,000 miles of rail, and fix or rebuild 150 miles of runways.
If the slope of the AE curve is 0.7, calculate the immediate change in aggregate planned expenditure and the change in real GDP in the short run if the price level remains unchanged.
Obama's New Stimulus
The Obama recovery plan announced on Monday includes proposed spending of $50 billion to rebuild 150,000 miles of roads, construct and maintain 4,000 miles of rail, and fix or rebuild 150 miles of runways.
If the slope of the AE curve is 0.7, calculate the immediate change in aggregate planned expenditure and the change in real GDP in the short run if the price level remains unchanged.
Explanation
Verified
Verified
Here the autonomous expenditure will inc...
Macroeconomics 11th Edition by Michael Parkin
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
