If the MPC in an economy is .8, government could shift the aggregate demand curve rightward by $100 billion by: A. increasing government spending by $25 billion?
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Answer:
If the MPC in an economy is .8 government could shift the aggregate demand curve rightward by $100 billion by increasing government spending by $80 billion. Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of the entire economy.
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Other answers
If the MPC in an economy is .8 government could shift the aggregate demand curve rightward by $100 billion by increasing government spending by $80 billion. Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of the entire economy.
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