a. By how much will GDP change if firms increase their investment by $11 billion and the MPC is 0.8? Instructions: Round your answers to the nearest whole number. The change in GDP $ billion. b. If the MPC is 0.5? The change in GDP $ billion.
a. By how much will GDP change if firms increase their investment by $11 billion and the MPC is 0.8? Instructions: Round your answers to the nearest whole number. The change in GDP $ billion. b. If the MPC is 0.5? The change in GDP $ billion.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter10: Keynesian Macroeconomics And Economic Instability: A Critique Of The Self Regulating Economy
Section10.2: The Simple Keynesian Model
Problem 3ST
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![a. By how much will GDP change if firms increase their investment by $11 billion and the MPC is 0.8?
Instructions: Round your answers to the nearest whole number.
The change in GDP $
billion.
b. If the MPC is 0.5?
The change in GDP = $
billion.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa80d608e-721c-4dc7-9523-8316eb8e5199%2F34d17977-9445-464f-bdba-a34d39a16be0%2Ffe2j2vu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:a. By how much will GDP change if firms increase their investment by $11 billion and the MPC is 0.8?
Instructions: Round your answers to the nearest whole number.
The change in GDP $
billion.
b. If the MPC is 0.5?
The change in GDP = $
billion.
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