November 28, 2015

Homework Help: Economics

Posted by Sally on Thursday, April 26, 2007 at 2:50am.

*MPC = 3/4

*change in Taxes(T) = $5 Billion

*change in Government Purchases= - $12 Billion

*Find the change in equilibrium Real GDP?

My answer that I get is a $63 Billion fall in Real GDP. Is this correct?

I too get a fall of $63B

Thanks for the help.

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