d.How will the firms adjust if the full employment level of income is 1500? Is this an inflationary or deflationary gap? How much is the gap? e.What will be the effect on the equilibrium income if the autonomous consumption has increased to 150? f.What will be the effect on the equilibrium income if the marginal propensity to- consume reduces to 0.6?
d.How will the firms adjust if the full employment level of income is 1500? Is this an inflationary or deflationary gap? How much is the gap? e.What will be the effect on the equilibrium income if the autonomous consumption has increased to 150? f.What will be the effect on the equilibrium income if the marginal propensity to- consume reduces to 0.6?
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter9: Classical Macroeconomics And The Self Regulating Economy
Section: Chapter Questions
Problem 5WNG
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