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If equilibrium income is equal to $ 2 , 0 0 0 billion, full - employment income ( natural real GDP ) is equal to
If equilibrium income is equal to $ billion, fullemployment income natural real GDP is equal to $ billion, and the MPS is the Keynesian model predicts that:
Question options:
a
an $ billion increase in government spending will close the recessionary gap.
b
there is no change in government spending that will close the recessionary gap.
c
a $ billion increase in government spending will close the recessionary gap.
d
a $ billion increase in government spending will close the recessionary gap.
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