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In a situation where an economy is experiencing a $200 billion negative GDP gap if the MPC is .8; in order to achieve the exact
In a situation where an economy is experiencing a $200 billion negative GDP gap if the MPC is .8; in order to achieve the exact level of full-employment the government should:
A. increase government expenditures by $40 billion
B. Increase government expenditures by $200 billion
C. reduce taxes by $200 billion
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