Question
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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Microeconomics
Authors: Robert Pindyck, Daniel Rubinfeld
8th edition
978-0132870436, 132870436, 013285712X, 978-0133371178, 133371174, 978-0132857123
