According to the Keynesian-cross analysis, when there is a shift upward in the government-purchases schedule by...
According to the Keynesian-cross analysis, when there is a shift upward in the government-purchases schedule by an amount ΔG and the planned expenditure schedule increases by an equal amount, the equilibrium income rises by:
ΔG x 1/(1-MPC)
ΔG x 1/(1+MPC)
One unit
ΔG
Homework Answers
Ans) the correct option is a) ΔG x 1/(1-MPC)
Change in income = Change in government expenditure * 1/(1-MPC)
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According to the Keynesian-cross analysis, when there is a shift
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