Homework Help: economics

Posted by Jjessica on Friday, August 6, 2010 at 4:04pm.

Assume that government purchases decrease by $10 billion, with other factors held constant, including the price level. Calculate the change in the level of real GDP demanded for each of the following values of the MPC.

a. 0.9
b. 0.8

I don't get it ! please help.

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