How much must government spending increase to eliminate the GDP gap? Assume that equilibrium real GDP is

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How much must government spending increase to eliminate the GDP gap?


Assume that equilibrium real GDP is \($800\) billion, potential real GDP is \($900\) billion, the MPC is .80, and the MPI is .40.

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Economics

ISBN: 9781032046723

9th Edition

Authors: William Boyes, Michael Melvin

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