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Business, 11.04.2020 01:50 jehwn

Assume that marginal propensity to consume is 0.8 and potential output is $800 billion. If the actual real GDP is $700 billion, government spending by would bring the economy to potential output

a. increasing; $20 billion

b. decreasing; $100 billion

c. increasing; $100 billion

d. increasing; $25 billion

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