00 110 5 Price level (CPT) 105 100 88 Ful employment. 50 [51 Real GDP AD₂ AD (trillions of dollars per year) Suppose the economy in Exhibit 11-2 is in equilibrium at point E, and the marginal propensity to consume (MPC) is 0.75. Following Keynesian economics, the federal government can move the economy to full employment at point E₂ by:
00 110 5 Price level (CPT) 105 100 88 Ful employment. 50 [51 Real GDP AD₂ AD (trillions of dollars per year) Suppose the economy in Exhibit 11-2 is in equilibrium at point E, and the marginal propensity to consume (MPC) is 0.75. Following Keynesian economics, the federal government can move the economy to full employment at point E₂ by:
Chapter9: Aggregate Expenditures
Section: Chapter Questions
Problem 8E
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Transcribed Image Text:00
110
5
Price level
(CPT)
105
100
88
Ful
employment.
50 [51
Real GDP
AD₂
AD
(trillions of dollars per year)
Suppose the economy in Exhibit 11-2 is in equilibrium at point E, and the marginal propensity to consume (MPC) is 0.75. Following
Keynesian economics, the federal government can move the economy to full employment at point E₂ by:
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