What conditions will an increase in the price of product

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Q. Suppose that a certain country has an MPC of 0.6 and real GDP of $400 billion. If its investment spending decreases by $6 billion, what will be its new level of real GDP?


Q. In what conditions will an increase in the price of a product lead to a reduction in total spending for that production

 

Reference no: EM1349786

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