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You are given the following data about an economy that has a fixed price level. Disposable Income (billions of dollars) Consumption Expenditure (billions of dollars) 0 5 100 80 200 155 300 230 400 305 a) Calculate the marginal propensity to consume. b) Calculate autonomous consumption expenditure. c) Calculate the multiplier. d) Calculate the increase in real GDP when autonomous spending increases by $5 billion. Why does real GDP increase by more than $5 billion?
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