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mr Goodwill [35]
2 years ago
3

Troll Island is a small island nation that recently experienced an autonomous change in aggregate expenditures (AE). AE increase

d by 55 billion, and the marginal propensity to consume on Troll Island is equal to 0.730.73 . What is the change in Troll Island's real GDP after the increase in AE
Business
1 answer:
german2 years ago
5 0

Answer:

The real GDP will rise by $203.70 billion

Explanation:

Marginal propensity to consume(MPC) = 0.73

Multiplier =  1 / 1 - MPC

Multiplier =  1 / 1 - 0.73

Multiplier = 1 / 0.27

Multiplier = 3.703704

Change in real GDP = Change in autonomous spending * autonomous spending multiplier

Change in real GDP = 55,000,000,000 * 3.703704

Change in real GDP = 203,703,720,000

The real GDP will rise by $203.70 billion

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goldenfox [79]

Answer:

Tactical goals.

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6 0
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jek_recluse [69]

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6 0
2 years ago
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ArbitrLikvidat [17]

Answer:

3. $53,550

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Total Period Cost                                                        <u>$53,550</u>

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