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An Economy Is at a Real GDP Level of $600

Question 50

Multiple Choice

An economy is at a real GDP level of $600 billion. Autonomous planned expenditures rise by $20 billion. If the MPC = .75, what will the new real GDP level be after the full potential multiplier effect occurs?


A) $680 billion
B) $700 billion
C) $520 billion
D) $480 billion

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