Explain why would the increase in gdp

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Suppose guitars and guitar strings are complements. Draw a graph indicating what will happen in the market for guitar strings if the price of guitars decreases.

C = 500 + 0.8 Y, I = 400, G = 400, (X - M) = -100
Solve for GDP.

What would be the impact on GDP if the government spending increased to 500?

Explain why would the increase in GDP be greater than the increase of a $100 increase in government spending?

Reference no: EM1353984

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