Consider an economy that is operating at the full employment level of real GDP.?

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Consider an economy that is operating at the full employment level of real GDP.?

Assuming the MPC is 0.90, predict the effect on the economy of a $50 billion increase in government spending balanced by a $50 billion increas in taxes.

2007-03-11 13:34:31 · 1 answers · asked by styles4u 4 in Social Science ➔ Economics

1 answers

Real GDP increases.

2007-03-11 19:57:49 · answer #1 · answered by Santa Barbara 7 · 0⤊ 0⤋

economy operating full employment level real gdp

2016-02-01 04:56:54 · answer #2 · answered by Agretha 4 · 0⤊ 0⤋