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(Simple Spending Multiplier) Suppose that the MPC is 0.8 and that $14 trillion of real GDP is currently being demanded. The government wants to increase real GDP demanded to $15 trillion at the given

(Simple Spending Multiplier) Suppose that the MPC is 0.8 and that $14 trillion of real GDP is currently being demanded.

(Simple Spending Multiplier) Suppose that the MPC is 0.8 and that $14 trillion of real GDP is currently being demanded. The government wants to increase real GDP demanded to $15 trillion at the given price level. By how much would it have to increase government purchases to achieve this goal?

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