ECON 203 - Lab 3 - Question 4.pdf - Print Preferences Help...

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Question 4 [6 points]The distinction between autonomous and induced expenditure is important for the determination ofequilibrium real GDP. Assume that the marginal propensity to consume is 0.8, the marginal propensity toimport is 0.2 and autonomous aggregate expenditure is 60. Please make sure your final answer(s) areaccurate to the nearest whole number.a)What is the equation for the aggregate expenditure function under these assumptions?b)Draw the aggregate expenditure function in the income-expenditure 45
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Term
Winter
Professor
Islam
Tags
Economics, Binary relation, Sondos Jleilati

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