Suppose that the government spending multiplier is 2.5, and that the tax multiplier is -3.5.In the Keynesian
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Suppose that the government spending multiplier is 2.5, and that the tax multiplier is -3.5.In the Keynesian Cross model,areduction in government spending and taxes of $100 million will ____ Real GDP by ____.
a increase;$100 million
b decrease;$100 million
c increase;$600 million
d decrease; $600 million
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