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question 49

Essay

Answer the following questions:
a. If aggregate expenditures falls by $5 million, and the MPC is 0.80, explain the process that will drive the economy to a new equilibrium level.
b. What will be the final result of this initial change?


Definitions:

Action Potential

A rapid, temporary change in a cell's membrane potential, allowing for the transmission of nerve impulses.

Absolute Refractory

The absolute refractory period is a time during which a nerve or muscle is incapable of responding to stimulation, immediately following an action potential.

Action Potentials

Rapid, short-lasting events where the electrical membrane potential of a cell rapidly rises and falls, typical in neurons and muscle cells during signal transmission.

Period

A length or span of time; in grammar, it is a punctuation mark used to denote the end of a sentence.

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