If the marginal propensity to consume (MPC) = 0.80 and for every $10 change in G, I decreases by $4. If the economy faces a recessionary gap of $700 billion, then government purchases (G) changes by x amont to solve the gap. solve for x amount in billions
If the marginal propensity to consume (MPC) = 0.80 and for every $10 change in G, I decreases by $4. If the economy faces a recessionary gap of $700 billion, then government purchases (G) changes by x amont to solve the gap. solve for x amount in billions
Chapter8: Aggregate Demand And The Powerful Consumer
Section: Chapter Questions
Problem 3DQ
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If the marginal propensity to consume (MPC) = 0.80 and for every $10 change in G, I decreases by $4. If the economy faces a recessionary gap of $700 billion, then government purchases (G) changes by x amont to solve the gap.
solve for x amount in billions
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