Explain how the dollar will lead to a multiplier chain


Problem

1. Does the economy this year seem to have an inflationary gap or a recessionary gap? (If you do not know the answer from reading the newspaper, ask your instructor.)

2. Try to remember where you last spent a dollar. Explain how this dollar will lead to a multiplier chain of increased income and spending. (Who received the dollar? What will he or she do with it?)

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Explain how the dollar will lead to a multiplier chain
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