Suppose a closed economy with no government spending or taxing is capable of producing an output of $1700 at full employment. Suppose also that autonomous consumption is $140, intended investment is $170, and the mpc is 0.50 What is the multiplier for this economy?

Suppose a closed economy with no government spending or taxing is capable of producing an output of $1700 at full employment. Suppose also that autonomous consumption is $140, intended investment is $170, and the mpc is 0.50 What is the multiplier for this economy?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter9: Aggregate Expenditures

Section: Chapter Questions

Problem 15E

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