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Refer to Figure 9.4 for the Following Question

Question 41

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Refer to Figure 9.4 for the following question.
Figure 9.4
Refer to Figure 9.4 for the following question. Figure 9.4 -In Figure 9.4, assume that potential GDP equals $100 billion. The economy is currently producing GDP₁ which is equal to $90 billion. If the MPC is 0.8, then how much must spending change for the economy to move to potential GDP? A) -$2 billion B) $2 billion C) $18 billion D) -$18 billion
-In Figure 9.4, assume that potential GDP equals $100 billion. The economy is currently producing GDP₁ which is equal to $90 billion. If the MPC is 0.8, then how much must spending change for the economy to move to potential GDP?


A) -$2 billion
B) $2 billion
C) $18 billion
D) -$18 billion

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