What is the impact on the level of real gdp demanded

Reference no: EM131227909

(Changes in Net Taxes) Using the income-expenditure model, graphically illustrate the impact of a $15 billion drop in government transfer payments on aggregate expenditure if the MPC equals 0.75. Explain why it has this impact. What is the impact on the level of real GDP demanded, assuming the price level remains unchanged?

Reference no: EM131227909

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