Business, 23.07.2019 05:20 joshtassler15

Assume that there is no accelerator affect. the mpc = 3/4. the government increases both expenditures and taxes by $600. the effect of taxes on aggregate demand is 3/4 the size of that created by government expenditures alone. the crowding out effect is 1/5 as strong as the combined effect of government expenditures and taxes on aggregate demand. how much does aggregate demand shift by?

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Assume that there is no accelerator affect. the mpc = 3/4. the government increases both expenditure...