Please calculate the expenditure multiplier, if the marginal propensity to consume = .80, the tax rate = .25 and the mar

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answerhappygod
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Please calculate the expenditure multiplier, if the marginal propensity to consume = .80, the tax rate = .25 and the mar

Post by answerhappygod »

Please calculate the expenditure multiplier, if the marginal
propensity to consume = .80, the tax rate = .25 and the marginal
propensity to import = .1
Please show in two side by side graphs the connection between
the multiplier and the AE curve (aggregate expenditure curve).
Suggestion: use a different value for the multiplier in each graph
and show how a decrease in AE will impact Real GDP. What determines
the slope of the AE line?
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