Assuming that the economy is below full employment, Business Economics

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Assuming that the economy is below full employment

Assuming that the economy is below full employment, demonstrate the effects of an increase in investment of $700. How will the increase in investment effect the economy in future periods? Assume that the MPC in the economy is .80. Show results graphically (AE/Y, S-I(i), and S I (y)

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Business Economics: Assuming that the economy is below full employment

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