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Business, 24.04.2020 16:20 Mariaisagon9050

Suppose the government in this economy decides to increase government purchases by $250 billion. The increase in government purchases will lead to an increase in income, generating an initial change in consumption equal to . This increases income yet again, causing a second change in consumption equal to . The total change in demand resulting from the initial change in government spending is .

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Suppose the government in this economy decides to increase government purchases by $250 billion. The...

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