Register
Assume the mpc is 0.8. Assuming only the multiplier effect matters, a decrease in government purchases of $100 billion will shift the aggregate demand curve to the
53.6k views
5 votes
Assume the mpc is 0.8. Assuming only the multiplier effect matters, a decrease in government purchases of $100 billion will shift the aggregate demand curve to the

User Desseim
by
7.5k points

1 Answer

3 votes
The answer is to the right by 500 billion. Check the attached file for the solution.
Assume the mpc is 0.8. Assuming only the multiplier effect matters, a decrease in-example-1
User Celada
by
8.6k points
← Prev Question Next Question →

Related questions

Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.5m questions

12.2m answers

Other Questions

Why did people immigrate to the United States in the late 1800s?
In the peaceful period of the Middle Kingdom, what area of culture thrived?
Why did the slogan Peace Land and Bread appeal to the Russian people?
Why wasn't New England's land well-suited for farming
''Life in a city is more rewarding than life outside a city."List two or three arguments in favor of this opinion and two or three arguments opposing this opinion
Link Copied!