Calculate the spending multiplier how much will the
Suppose the equilibrium real GDP (output) is 100 billion and the MPC is 4/5 (which is 0.8). Calculate the spending multiplier. How much will the equilibrium output change if businesses increase their level of investment by $10 billion?
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how are changes in the mpc or which amounts to the same thing changes in the mps and the size of the multiplier related
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suppose the equilibrium real gdp output is 100 billion and the mpc is 45 which is 08 calculate the spending multiplier
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