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Business, 26.11.2019 19:31 jazzy200076

Assume the marginal propensity to consume is 0.8 and potential output is $800 billion. if actual real gdp is $700 billion, which of the following policies would bring the economy to potential output? a. decrease taxes by $25 billion.
b. decrease government transfers by $25 billion.
c. decrease taxes by $100 billion.
d. increase taxes by $100 billion.

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