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In 2009, President Obama passed a $787 billion stimulus to fill an output gap of $2 trillion (or $2,000 billion). Many economists argued that this
In 2009, President Obama passed a $787 billion stimulus to fill an output gap of $2 trillion (or $2,000 billion). Many economists argued that this was too small. Knowing that the actual multiplier was 1.5, how big should the stimulus have been to close the output gap? a.$1,500 billion b.$787 billion c.$1,333 billion d.$2,000 billion
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