Suppose MPS=0.68 and MPI=0.17 19. What is the spending multiplier? 20. What is the level of real GDP if the government increases spending by 300 million dollars? 21. What is the level of real GDP if the government decreases spending by 350 million dollars?

Suppose MPS=0.68 and MPI=0.17 19. What is the spending multiplier? 20. What is the level of real GDP if the government increases spending by 300 million dollars? 21. What is the level of real GDP if the government decreases spending by 350 million dollars?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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