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Consider the following diagram, in which the current short-run equilibrium is at point A. LRAS SR/ a. At point A, the economy has b. If

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Consider the following diagram, in which the current short-run equilibrium is at point A. LRAS SR/ a. At point A, the economy has b. If the marginal propensity to consume equals 0.8, to 122 eliminate the gap, the government should decrease spending by $ trillion. (Round your answer to two 118 A decimal places.) Price Level 114 22 22.8 23.6 Real GDP per Year ($ trillion)

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