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The government reduces spending by $500 billion. Given the multiplier effect, how will GDP be impacted? It will increase by less than $500 billion.

The government reduces spending by $500 billion. Given the multiplier effect, how will GDP be impacted? It 

The government reduces spending by $500 billion. Given the multiplier effect, how will GDP be impacted? It will increase by less than $500 billion. It will decrease by less than $500 billion. It will decrease by more than $500 billion. It will increase by more than $500 billion.

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