Troll Island is a small island nation that recently experienced an autonomous change in aggregate expenditures (AE). AE increased by 77 billion, and the marginal propensity to consume on Troll Island is equal to 0.850.85. What is the change in Troll Island's real GDP after the increase in AE? Enter your answer in billions of dollars, rounded to one place after the decimal. For example, an answer of $2,500,000 should be entered as 2.5.
Troll Island is a small island nation that recently experienced an autonomous change in aggregate expenditures (AE). AE increased by 77 billion, and the marginal propensity to consume on Troll Island is equal to 0.850.85. What is the change in Troll Island's real GDP after the increase in AE? Enter your answer in billions of dollars, rounded to one place after the decimal. For example, an answer of $2,500,000 should be entered as 2.5.
Chapter9: The Keynesian Model In Action
Section: Chapter Questions
Problem 14SQ
Related questions
Question
Troll Island is a small island nation that recently experienced an autonomous change in aggregate expenditures (AE). AE increased by 77 billion, and the marginal propensity to consume on Troll Island is equal to 0.850.85.
What is the change in Troll Island's real
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning