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Consider the economy of Canada. Its households spend 80% of increases in their income and saves 20%. There are no taxes and no foreign trade.

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Consider the economy of Canada. Its households spend 80% of increases in their income and saves 20%. There are no taxes and no foreign trade. Currently, Canada has a recessionary gap, the governments aim is to get potential output at 600 billion dollars. How much initial government spending do they need to have to achieve the overall increase of 600 billion dollars. Instructions: Round your answer to a whole number. Leave your answer in billions. You just need to put the number in your answer, no units or commas

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