Refer to Figure 23 3 Suppose that investment spending decreases by 5 million

Refer to figure 23 3 suppose that investment spending

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109) Refer to Figure 23 - 3. Suppose that investment spending decreases by $5 million, decreasing aggregate expenditure and decreasing real GDP from GDP 2 to GDP 1 . If the MPC is 0.8, then what is the change in GDP? 109) Diff: 2 Page Ref: 773 - 774/399 - 400 Topic: The Multiplier Effect Learning Outcome: Macro 8: Investigate the relationship between income and expenditures AACSB: Analytic Skills
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  • Three '11
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  • Unemployment, aggregate expenditure, AACSB, Page Ref

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