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According to the Congressional Budget Office, the cumulative output gap from the Great Recession was 2.29 trillion. If we assume the marginal propensity to consume
According to the Congressional Budget Office, the cumulative output gap from the Great Recession was 2.29 trillion. If we assume the marginal propensity to consume in the U.S. economy is 0.75 and the simplest form of the spending multiplier, then approximately how large would a government stimulus package have to be in order to completely fill the output gap caused by the recession? Group of answer choices $0.57 trillion $3.05 trillion $1.71 billion $1.54 trillion
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