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Suppose the MPC in the economy in Figure 10.2 equals 0.75 and the shift from ADo to AD1 level of real output as a result
Suppose the MPC in the economy in Figure 10.2 equals 0.75 and the shift from ADo to AD1 level of real output as a result of the initial $50 billion decrease? A. It will fall by less than $200 billion B. It will fall by exactly $200 billion C. It will fall by more than $200 billion D. It will fall by less than $67 billion
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