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

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
asked 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

asked
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
answered
User Celada
by
8.6k points
← Prev Question Next Question →

Related questions

Ask a Question
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.

Categories

Other Questions

Who was the boy who  became king at the age of 9?
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?
Link Copied!