Problem
In an economy in which the multiplier has a value of 3, the price level has decreased from 115 to 110. As a consequence, there has been a movement along the aggregate demand curve from $15 trillion in real GDP to $15.9 trillion in real GDP.
a. What is the marginal propensity to save?
b. What was the amount of the change in autonomous expenditures generated by the decline in the price level?
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.