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Suppose the consumption function is C = $400 billion + 0.8Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially (before multiplier effects) with: ( a ) A $50 billion increase in government purchases? ( b ) A $50 billion tax cut? ( c ) A $50 billion increase in income transfers?

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  • Category:- Econometrics
  • Reference No.:- M9677338

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