MPC, Macroeconomics

A change in government purchases of goods and services 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.
Suppose that the MPC is equal to 0.75. What was the size of the change in government purchases of goods and services that resulted in the increase of GDP of $200 million?
Posted Date: 10/21/2012 8:21:26 PM | Location : United States

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