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You are informed that due to inaction by government the recessionary Real GDP gap now stands at $3,100,000, and the income multiplier is now 8.98.
You are informed that due to inaction by government the recessionary Real GDP gap now stands at $3,100,000, and the income multiplier is now 8.98.
By how much should country X's government increase the "Autonomous consumption" (i.e., spending) to close the $3,100,000 recessionary Real GDP gap to help the economy reach full employment?
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