What is the marginal propensity to consume in the economy

Reference no: EM13233767

At an initial point on the aggregate demand curve, the price level is 100, and real to GDP is $15trillion. After the price level rises to 110, however, there is an upward movement along the aggregate demand curve, and real GDP declines to $14 trillion. If total autonomous spending declined by $200 billions in sponse to the price level, what is the marginal propensity to consume in this economy?

Reference no: EM13233767

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