whot happens to C,I,G,NX, AD As, P, GDP, nempiayment, ife govemment Cuts govenment Spending by l00...

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whot happens to C,I,G,NX, AD As, P, GDP, nempiayment, ife govemment Cuts govenment Spending by l00 B..on and the Mpc is.Go. A

business economics

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Solution W Given government cuts government spending by loo billion and mpc =0.90 • Keynesian model with upward sloping af cu N7 Investment might increase ef-government now enjoys budget surplus. · G would fall . .NX would increase because imports fal

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whot happens to C,I,G,NX, AD As, P, GDP, nempiayment, ife govemment Cuts govenment Spending by l00...

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