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In a closed economy, the MPC is 0.50. Government spending changes by - 400. The change in equilibrium GDP is

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter10: Kenesian Macroeconomics And Economic Instability: A Critique Of The Self Regulating Economy

Section: Chapter Questions

Problem 11QP

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In a closed economy, the MPC is 0.50.
Government spending changes by -400. The change in equilibrium GDP is

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