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Unformatted text preview: 5. 90 = 1/3(GDP). Now all we have to do is solve for GDP. We know that 1/3 (GDP) = 90 so the whole GDP would be 3 times 90. Formally, you would multiply both sides of the equation by 3 and get 6. 270 = GDP To find the rest of these, simply repeat these steps and add it the new terms. DO NOT assume that GDP is always 270. It is NOT. It will change in each situation. Find: 1. Cf = GDP __270______ 2. Cf + Ig = GDP ____345________ 3. Cf + Ig + G = GDP ___465__________ 4. Cf + Ig + G + Xn = GDP _____420________ 5. Government and Investment Multiplier is _____3____ 6. Tax Multiplier is _2 _______ Remember 45 line. Graph Lines represented by #3. and #4....
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This note was uploaded on 03/26/2012 for the course ECON GM545 taught by Professor Gotches during the Summer '11 term at Keller Graduate School of Management.
 Summer '11
 gotches
 Economics

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