Business, 17.03.2020 04:18 spellsaltoniza

Assume that the full-employment level of output is $1,000 and the price level associated with full-employment output is 100. Also assume that the economy's current level of output is $1,100 and, at the price level of 100, current aggregate demand is $1,200. If the government moves the economy back to the full-employment level of output by reducing government purchases by $50, then the expenditures multiplier equals

A. 2.
B. 5.
C. 4.
D. 10.

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Assume that the full-employment level of output is $1,000 and the price level associated with full-e...