Assume That in the Economy of Utrea,the MPC Is 0

question 19

Essay

Assume that in the economy of Utrea,the MPC is 0.8 and the multiplier is 3 and that both government spending and autonomous taxes are increased by $40.In what direction and by how much will equilibrium GDP change?

---

Definitions:

Nuclear Explosion

A highly destructive blast caused by the release of energy from the rapid and uncontrolled release of nuclear fission or fusion reactions.

Enrichment

The process of increasing the proportion of a desired material or isotope in a mixture.

Nuclear Material

Substances that emit radiation, used in energy production, medicine, and atomic weapons.