What would be the ratio of a decline in real gdp
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What relationship does the MPC bear to the size of the multiplier? The MPS? What will the multiplier be when the MPS is 0, .4, .6, and 1?
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What would be the ratio of a decline in real GDP to the initial drop in aggregate expenditures if the slope of your aggregate expenditures schedule was .8?
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If the multiplier was 2 in that period, what was the size of the economy's recessionary expenditure gap?
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