The Equilibrium Level of Real GDP Is $5,000 Billion, the Full

Multiple Choice

The equilibrium level of real GDP is $5,000 billion, the full employment level of real GDP is $6,000, and the marginal propensity to consume (MPC) is 0.90. Which of the following statements is true ?

A) A recessionary gap exists equal to $100 billion.
B) The full employment target could be reached if government increased its spending by $100 billion.
C) Both of the above statements are true.
D) Neither of the above statements are true.