Macroeconomics, Student Value Edition (7th Edition)
Macroeconomics, Student Value Edition (7th Edition)
7th Edition
ISBN: 9780134739038
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 12, Problem 12.4.9PA

Subpart (a):

To determine

The size of the multiplier.

Subpart (b):

To determine

The impact of increase in real GDP.

Subpart (c):

To determine

The impact of real GDP on the MPC.

Subpart (d):

To determine

The impact of increase in real GDP that reduces the average tax paid.

Subpart (e):

To determine

The size of the multiplier.

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Demand and supply function

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