Suppose an economy is initially in equilibrium at $600 billion and investment increases by $20 billion....
- Suppose an economy is initially in equilibrium at $600 billion and investment increases by $20 billion. This causes the economy to expand to $800 billion. Calculate the value of the multiplier.
Homework Answers
Ans) the value of the multiplier = 10
Multiplier = change in output / change in investment
= 200/20 = 10
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Suppose an economy is initially in equilibrium at $600 billion
and investment increases by $20 billion....
QUESTION 21 Suppose investment spending initially increases by $50 billion in an economy whose MPC is...
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