What is the multiplier effect?
What is the difference between an autonomous change in spending and an induced change in spending?
What is the multiplier? If MPC = 0.75,what is the value of the multiplier in the simple model of the economy?
Use the following data to calculate equilibrium real GDP: C = 0.75Y,I = $2 trillion,G = $1 trillion and NX = -$0.5 trillion.