Show the adjustment process to new equilibrium using graph, Macroeconomics

Consider the multiplier model we have studied in class. Assume that the economy is initially in equilibrium and that real income is $180. The marginal propensity to expend is 0.66. If autonomous exports have just fallen by $20, what will happen to equilibrium income? What about unemployment? Show the adjustment process to the new equilibrium using a graph.

Posted Date: 3/21/2013 5:52:07 AM | Location : United States







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