Consumption allowances actually increase by 10 percent

Reference no: EM13283306

Assume that some of the data provided in problem 1 change next year. Specifi cally, government expenditures increase by 10 percent; gross private domestic investment declines by 10 percent; and imports of goods and services drop to $6 billion. Assume the other information as given remains the same next year. a. Determine the nation's gross domestic product (GDP) for next year. b. How would your answer change in (a) if personal consumption expenditures are only $35 billion next year and capital consumption allowances actually increase by 10 percent

Reference no: EM13283306

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