Use your answer to the previous problem to calculate the
Question and Solution
Use your answer to the previous problem to calculate the MPC, MPS, government spending multiplier, and tax multiplier. D
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Use your answer to the previous problem to calculate the MPC, MPS, government spending multiplier, and tax multiplier. Draw a graph showing the data for consumption spending, planned aggregate expenditures, and aggregate output. Be sure to identify the equilibrium point on your graph.
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