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If government expenditure rises by $ 2 7 . 5 billion and the multiplier in the economy is 2 . 5 , then: real GDP
If government expenditure rises by $ billion and the multiplier in the economy is then:
real GDP rises by $ billion, and the IS curve shifts to the right.
real GDP falls by $ billion, and the IS curve shifts to the left.
real GDP falls by $ billion, but the IS curve does not shift.
real GDP rises by $ billion, and the IS curve shifts to the right.
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