Business, 06.10.2019 03:40 carlinryan
Initially, the economy is in long-run equilibrium. aggregate demand then shifts leftward by $50 billion. the government wants to increase its spending in order to avoid a recession. if the crowding-out effect is always one-third as strong as the multiplier effect, and if the mpc equals 0.6, then by how much do government purchases have to increase in order to offset the $50 billion leftward shift?
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Initially, the economy is in long-run equilibrium. aggregate demand then shifts leftward by $50 bill...
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