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Assume that government purchases decrease by $10 billion, with other factors held constant. find out the change in the level of real GDP demanded for each of the following values of the MPC. Then find out the change if the government, instead of reducing its purchases, increased autonomous net taxes by $10 billion.

0.9

0.8

0.75

0.6

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M969334

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