Give an hypothetical numerical example to show the relationship between the marginal propensity to consume (MPC)...

Give an hypothetical numerical example to show the relationship between the marginal propensity to consume (MPC) and the multiplier (m)? How do you conclude the relationship between these two? b. Considering both the Keynesian and the aggregate demand-supply frameworks, if households as a group experience an increase in wealth at a given price level, what happen to total expenditure (TE), aggregate demand (AD) and Real GDP. Illustrate and explain the changes using a suitable graph.

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Rahul Sunny answered 1 year ago

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