Multiple Choice
If the economy has a recessionary expenditure gap of $15 billion and the MPS is 0.3, then the equilibrium level of GDP is
A) $16 billion below the full-employment level.
B) $21 billion below the full-employment level.
C) $50 billion below the full-employment level.
D) $50 billion above the full-employment level.
Correct Answer:
Verified
Correct Answer:
Verified
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