In your own words, explain the multiplier process . Under what conditions would the mult
In your own words, explain the multiplier process . Under what conditions would the multiplier in the simple model be the same as and different from the full model with government and the external sector? How does this relate to the circular flow of income discussed in previous chapters?
130) Explain the relationship between total planned expenditures and the aggregate demand curve.
131) With the aid of a diagram, show how the changes in the MPS and the MPC will affect the slope of the TPE. In each case indicate the effect on teh multiplier.