What happens to aggregate expenditures
Problem: Suppose MPC is 0.8 initially. Households then change their behavior so that the MPC falls to 0.75. What happens to aggregate expenditures? Why?
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The most common measure of an economy’s standard of living is:
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Suppose MPC is 0.8 initially. Households then change their behavior so that the MPC falls to 0.75. What happens to aggregate expenditures? Why?
Q1. Using the above data, determine GDP by both the expenditures and the incomes. Then determine NDP. Q2. Now determine NI in two ways: first, by making the required additions or subtractions from NDP; and second, by adding up the types of incomes
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