6 Suppose that the level of GDP increased by $400 billion in a private closed economy where the marginal propensity to consume is 0.80. Aggregateexpenditures must have increased byMultiple ChoicePanof$400 billion.$30 billion.$80 billion$320 billion.

Aggregate expenditure is characterized as the ongoing value of the multitude of completed goods and…

ppose that the level of GDP increased by $400 billion in a private closed economy where the marginal propensity to consume is 0.80. Aggregate penditures must have increased by Multiple Choice $400 billion $30 billion

ppose that the level of GDP increased by $400 billion in a private closed economy where the marginal propensity to consume is 0.80. Aggregate penditures must have increased by Multiple Choice $400 billion $30 billion

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter8: Aggregate Demand And The Powerful Consumer

Section: Chapter Questions

Problem 8DQ

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Question

Suppose that the level of GDP increased by $400 billion in a private closed economy where the marginal propensity to consume is 0.80. Aggregate
expenditures must have increased by
Multiple Choice
Panof
$400 billion.
$30 billion.
$80 billion
$320 billion.

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