If government purchases increase by $20 billion and aggregate demand shifts rightward by $30 billion as a result, we can conclude that: Question 32 options: the spending multiplier is 3.00 the MPC for this economy is 0.33 the MPW for this economy is 0.33 unemployment is rising the spending multiplier is 2.00
If government purchases increase by $20 billion and aggregate demand shifts rightward by $30 billion as a result, we can conclude that: Question 32 options: the spending multiplier is 3.00 the MPC for this economy is 0.33 the MPW for this economy is 0.33 unemployment is rising the spending multiplier is 2.00
Chapter21: Fiscal Policy
Section: Chapter Questions
Problem 19SQ
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Question
If government purchases increase by $20 billion and aggregate demand shifts rightward by $30 billion as a result, we can conclude that:
Question 32 options:
|
the spending multiplier is 3.00 |
|
the MPC for this economy is 0.33 |
|
the MPW for this economy is 0.33 |
|
|
|
the spending multiplier is 2.00 |
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