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If the MPC is 0.8 and the equilibrium GDP is $20 billion below the full-employment GDP, then the size of the recessionary expenditure gap is
If the MPC is 0.8 and the equilibrium GDP is $20 billion below the full-employment GDP, then the size of the recessionary expenditure gap is
Multiple Choice
- $4 billion.
- $20 billion.
- $16 billion.
- $10 billion.
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Managerial Economics A Problem Solving Approach
Authors: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
4th edition
1305259335, 978-1305259331
