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If the MPC is 0.5 and the equilibrium GDP is $100 billion below the full-employment GDP, then the size of the recessionary expenditure gap is
If the MPC is 0.5 and the equilibrium GDP is $100 billion below the full-employment GDP, then the size of the recessionary expenditure gap is
Multiple Choice
- $50 billion.
- $100 billion.
- $25 billion.
- $200 billion.
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Macroeconomics Canada in the Global Environment
Authors: Michael Parkin, Robin Bade
8th edition
321778103, 978-0321808370, 321808371, 978-0321778109
