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Suppose, ceteris paribus, government purchases decreased by $4 billion, investment spending increased by $40 billion.
A. EXPLAIN (no calculation yet). Would total output increase or decrease? What is the multiplier effect and how does it influence the answer to the question.
B. SOLVE. If 70% of a change in income is spent on new goods and services, what is the anticipated change in total output? Use the formula for the multiplier effect to calculate the change in total output.
marginal propensity 0.63 - 0.76what is expenditure multiplier?wil increase from to and if multiplier increases
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Historically, shifts towards a more expansionary monetary policy have often been associated with increases in real output. Is this surprising? why or why not?
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When the price fell from $29 to $19, how much did each consumer’s individual consumer surplus change? How does total consumer surplus change?
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A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue so $10, average total cost of $8 and fixed cost of $200. what is the profit.
complete this essay in a microsoft word document with a minimum of 250 words apa formattedin what respects are the
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