ECON MACRO
5th Edition
ISBN: 9781337000529
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 9, Problem 5.10P
Sub-Part
A
To determine
The size of the simple spending multiplier and the total change in real
B
To determine
The size of the simple spending multiplier and the total change in real GDP demanded following a $10 billion decrease in spending, for MPC= 0.75
C
To determine
The size of the simple spending multiplier and the total change in real GDP demanded following a $10 billion decrease in spending, forMPC = 0.6
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In this question, you will test relative purchasing parity (PPP) using the data. Use yearly
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