28.1k views
5 votes
Tje greek government decides to introduce new austerity measures, which reduce government direct spending by $16 billion. Greece has a marginal propensity to consume of 0.6.

What wilk be the final change in real gdp as a result of this decreased spending?

User Seth Moore
by
6.0k points

1 Answer

5 votes
Tje greek government decides to introduce new austerity measures, which reduce government direct spending by $16 billion. Greece has a marginal propensity to consume of 0.6.
What wilk be the final change in real gdp as a result of this decreased spending?
User Ali Elzoheiry
by
5.8k points