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Suppose that government spending increases, shifting up the aggregate expenditure line. GDP increases from GDP 1to GDP 2, and this amount is $400 billion. If
Suppose that government spending increases, shifting up the aggregate expenditure line. GDP increases fromGDP 1toGDP 2, and this amount is $400 billion. If the MPC is 0.75, then what is the distance betweenNandLor by how much did government spending change?
$10 billion
$100 billion
$200 billion
$300 billion
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