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Initially, the economy is in long-run equilibrium. Aggregate demand then shifts leftward by $30 billion. The government wants to increase its spending in order to

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Initially, the economy is in long-run equilibrium. Aggregate demand then shifts leftward by $30 billion. The government wants to increase its spending in order to avoid a recessionary gap. Due to Incomplete crowding out effect, 40 percent of the autonomous multiplier is lost, and if the MPC equals 0.6, then by how much do government purchases have to increase in order to offset the $30 billion leftward shift? By $30 billion By $20 billion By $10 billion By $15 billion

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