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Suppose over the course of 2021the following percentages emerge:Out of every dollar earned .2711 cents is paid in taxes; .0283 is saved; .1839 is spent

Suppose over the course of 2021the following percentages emerge:Out of every dollar earned .2711 cents is paid in taxes; .0283 is saved; .1839 is spent on imported goods.If that year the recessionary GDP gap is $712.93 billion, a __________ economist would recommend _________ government spending by ____ because the multiplier is:

a.Keynesian; increasing; $344.58 billion; 2.069

b.Keynesian; increasing; $712.93 billion; greater than one

c.Classical; not changing; any amount; a less effective policy tool than wage and price controls.

d.Monetarist; decreasing; $2.069 billion; an ineffective way to boost aggregate demand.

e.B and D only

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