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Suppose that the spending multiplier is 4 and the economy has unemployed resources and excess capacity. If spending increases and the economy moves to an
Suppose that the spending multiplier is 4 and the economy has unemployed resources and excess capacity. If spending increases and the economy moves to an equilibrium above full employment, then the change in output will be: less than four times the change in spending. four times the change in spending. zero. more than four times the change in spending
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