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**Unformatted text preview: **expenditure equilibrium GDP? d. What is the value of the multiplier? e. If planned investment spending falls to $200 billions, what will be the new Y? f. If autonomous consumer spending rises to $200 billions, what will be the new Y*? Exercise 3 (15 points) A change in autonomous consumption results in a change in real GDP equal to $200 million. Assume the absence of taxes, international trade, and changes in the aggregate price level. a Suppose that the MPC is equal to 0.75. What was the size of the change in autonomous consumption that resulted in the increase in real GDP of $200 million? b. Now suppose that the change in autonomous consumptionn was $20 million. What value of the multiplier would result in an increase in real GDP of $200 million?...

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- Fall '17