An economy has no imports and no income taxes, MPC is 0.9, and real GDP is $200 billion. Businesses increase investment by $10 billion. Calculate the multiplier and the change in real GDP. The multiplier is . The change in real GDP is $ billion.
An economy has no imports and no income taxes, MPC is 0.9, and real GDP is $200 billion. Businesses increase investment by $10 billion. Calculate the multiplier and the change in real GDP. The multiplier is . The change in real GDP is $ billion.
Chapter19: The Keynesian Model In Action
Section: Chapter Questions
Problem 13SQ
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