Mathematics, 30.11.2021 07:20, sonthatshannah

Suppose the government in this economy decides to decrease government purchases by $350 billion. The decrease in government purchases will lead to a decrease in income, generating an initial change in consumption equal to . This decreases income yet again, causing a second change in consumption equal to . The total change in demand resulting from the initial change in government spending is .

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Suppose the government in this economy decides to decrease government purchases by $350 billion. The...