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Home Q & A Board Other Fields Homework Help Business Economics
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Mandolina Mandolina
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7 years ago
Assume the economy is operating at a level of equilibrium output $200 billion less than full employment. If the economy's MPC is 0.75, by how much must government spending be increased to achieve full employment without generating inflation?
A) $200 billion
B) $150 billion
C) $800 billion
D) $50 billion
E) $266.7 billion
Textbook 
Introduction to Economic Reasoning

Introduction to Economic Reasoning


Edition: 8th
Author:
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hecosmetichecosmetic
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7 years ago
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Mandolina Author
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#2
6 years ago
Wwow, couldn't thank you enough
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