the level of real GDP demanded
Assume the simple spending multiplier equals 10. Determine
the size and direction of any shifts in the aggregate expenditure line, the
level of real GDP demanded, and the aggregate demand curve for each of the
following changes in autonomous spending:
a. Autonomous spending rises by $8 billion.
b. Autonomous spending falls by $5 billion.
c. Autonomous spending rises by $20 billion.
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