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Assume the marginal propensity to consume = .8, and government purchases increase by $.2 Trillion.
1. Potentially, how much will real GDP increase in the short-run after the increase in government purchases?
2. Besides government purchases, what and how much did another spending category increased due to the multiplier described above? Explain?
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I am working on a project for my class and this week discussion is on international trade and exports. what I am needing is the information for the 1970s
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