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Suppose in 2010,real GDP was $160 trillion.Suppose further that the marginal propensity to consume was 0.75 and the marginal propensity to import was 0.25.Using the Keynesian multiplier,how much should government purchases be changed if policymakers attempt to raise real GDP to $180 trillion by changing government purchases?
Industrial Revolution
A period of major industrialization that took place during the late 1700s and early 1800s, radically changing manufacturing processes, society, and the global economy.
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