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Graph the following situation. Suppose the economy is in a recessionary gap and GDP is in equilibrium at $500B and potential GDP is $700B. In

Graph the following situation. Suppose the economy is in a recessionary gap and GDP is in equilibrium at $500B and potential GDP is $700B. In this economy, the MPC in this economy is .9, how much Government spending is needed to bring the economy to potential GDP?

Show the change in the graph when Government Spending increases the prescribed amount.

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