Question

Assume that government purchases decrease by $10 billion, with other factors held constant, including the price level

Assume that government purchases decrease by $10 billion, with other factors held constant, including the price level. Calculate the change in the level of real GDP demanded for each of the following values of the MPC.

a. 0.9
b. 0.8

I don't get it ! please help.

Solutions

Expert Solution
No answers


Submit Your Answer