Suppose that you have the following information for an economy:.
Marginal propensity to consume - MPC 0.80 Autonomous consumption - A $500 Planned investment - PI $600 Net exports - NX -$400 Government spending - G $300
You will need this information for the questions that follow.
Part 1. When real GDP is equal to $4,500, aggregate expenditure is equal to $ .
Part 2. When real GDP is equal to $5,000, aggregate expenditure is equal to $ .
Part 3. When real GDP is equal to $5,500, aggregate expenditure is equal to $ .
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Suppose that you have the following information for an economy:.
Marginal propensity to consume - M...
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