Multiple Choice
Assume that the MPC is 0.75, full employment is considered to be at a GDP level of $500 billion, and the GDP is $600 billion. What should the government do to achieve full employment?
A) reduce spending by $25 billion
B) reduce spending by $100 billion
C) increase spending by $25 billion
D) increase spending by $10 billion
Correct Answer:
Verified
Correct Answer:
Verified
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