Business, 02.12.2019 23:31 naomicervero

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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Assume that marginal propensity to consume is 0.8 and potential output is $800 billion. if the actua...