Suppose that the MPC is 0.8 and that $10 trillion of real GDP is currently being demanded. The government wants to increase real GDP demanded to $11 trillion. By how much would it have to increase government spending to achieve this goal?© BrainMass Inc. brainmass.com March 4, 2021, 5:54 pm ad1c9bdddf
The goal is to increase real GDP demanded by $11-10= $1 trillion
While the MPC ...
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