Multiple Choice
Assume that the multiplier is 10. Full employment is considered to be at a GDP level of $500 billion. Current GDP is $400 billion. According to Keynesian macroeconomics, what should the government do to achieve full employment?
A) decrease spending by $25 billion
B) decrease spending by $100 billion
C) increase spending by $10 billion
D) increase spending by $25 billion
Correct Answer:
Verified
Correct Answer:
Verified
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