The marginal propensity to consume in an economy is 08 if


The marginal propensity to consume in an economy is 0.8. If the price level is fixed, a $400 increase in net exports would be expected to increase real GDP by how much? 2) Now suppose that the economy is known to be at a level of GDP that above full employment and that the price level in not fixed. If the short-run aggregate supply curve (SRAS) is positively sloped, what the most likely effect of the increase in net exports? Aggregate demand will a) increase b) not change. Real GDP will increase or decrease by how much?

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Business Economics: The marginal propensity to consume in an economy is 08 if
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