Assume the economy is in a recession, and it is estimated that a change of $800 billion in federal government spending will boost GDP by $4,000 billion this year. Based on this information, what is the value of the MPC used in this forecast?

Assume the economy is in a recession, and it is estimated that a change of $800 billion in federal government spending will boost GDP by $4,000 billion this year. Based on this information, what is the value of the MPC used in this forecast?

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter9: The Keynesian Model In Action

Section: Chapter Questions

Problem 13SQ

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*Assume the economy is in a recession, and it is estimated that a change of $800 billion in federal government spending will boost GDP by $4,000 billion this year. Based on this information, what is the value of the MPC used in this forecast?

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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