Macroeconomics MCQ The Aggregate Expenditures Model Assume that the marginal propensity to save is 0.1 in an economy. To reduce the level of real GDP by $50 billion in that economy to achieve a full employment level of output, it will be necessary to

Assume that the marginal propensity to save is 0.1 in an economy. To reduce the level of real GDP by $50 billion in that economy to achieve a full employment level of output, it will be necessary to

The Aggregate Expenditures Model

Assume that the marginal propensity to save is 0.1 in an economy. To reduce the level of real GDP by $50 billion in that economy to achieve a full employment level of output, it will be necessary to

A) decrease the aggregate expenditures schedule by $50 billion
B) decrease the aggregate expenditures schedule by $5 billion
C) increase the aggregate expenditures schedule by $50 billion
D) increase the aggregate expenditures schedule by $5 billion

Answer: B

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Macroeconomics MCQ

Assume that the marginal propensity to save is 0.1 in an economy. To reduce the level of real GDP by $50 billion in that economy to achieve a full employment level of output, it will be necessary to

Assume that the marginal propensity to save is 0.1 in an economy. To reduce the level of real GDP by $50 billion in that economy to achieve a full employment level of output, it will be necessary to

Learn More :

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