The graph below characterizes a simple economy with only two components of aggregate expenditures: consumption and investment. Consumption and aggregate expenditures per year (billions of dollars) $6,000 Multiplier 5,000 4,000 3,000 2,000 1,000 0 Find the value of the multiplier in this example 45° AE C $1,000 2,000 3,000 4,000 5,000 6,000 Real GDP per year (billions of dollars)
The graph below characterizes a simple economy with only two components of aggregate expenditures: consumption and investment. Consumption and aggregate expenditures per year (billions of dollars) $6,000 Multiplier 5,000 4,000 3,000 2,000 1,000 0 Find the value of the multiplier in this example 45° AE C $1,000 2,000 3,000 4,000 5,000 6,000 Real GDP per year (billions of dollars)
Chapter19: The Keynesian Model In Action
Section: Chapter Questions
Problem 8SQ
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