Question: Answer ) Listen Suppose an economy has an initial real output of $250 billion. A newly elected government increases government purchases by $10 billion. Holding

Answer

) Listen Suppose an economy has an initial real output of $250 billion. A newly elected government increases government purchases by $10 billion. Holding the price level constant and assuming an MPW = 0.2 what is the level of real output after the effects of the multiplier are fully accounted for? $260 billion $262.5 billion $300 billion $250 billion Next Page Page 26 of 40 Submit Quiz 25 of 40 questions saved

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