Question Suppose that the marginal propensity to consume is 0.75 and the total change in real GDP is $100, what must have been the initial change in aggregate expenditures? Provide your answer below:
Question Suppose that the marginal propensity to consume is 0.75 and the total change in real GDP is $100, what must have been the initial change in aggregate expenditures? Provide your answer below:
Chapter23: The Aggregate Expenditure Model
Section: Chapter Questions
Problem 9P
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Suppose that the marginal propensity to consume is 0.75 and the total change in real GDP is $100, what must have been
the initial change in aggregate expenditures?
Provide your answer below:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F470a9dcb-02ee-4386-831b-818341ed1d34%2Fef953f5f-866c-453f-a668-4e73e4e7d448%2Ffjx0h3h_processed.png&w=3840&q=75)
Transcribed Image Text:Question
Suppose that the marginal propensity to consume is 0.75 and the total change in real GDP is $100, what must have been
the initial change in aggregate expenditures?
Provide your answer below:
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