Problem
At an initial point on the aggregate demand curve, the price level is 100, and real GDP is $15 trillion. After the price level rises to 110, however, there is an upward movement along the aggregate demand curve, and real GDP declines to $14 trillion. If total autonomous spending declined by $200 billion in response to the increase in the price level, what is the marginal propensity to consume in this economy?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.