Multiple Choice
Refer to Figure 23-3. Suppose that government spending increases,shifting up the aggregate expenditure line. GDP increases from GDP₁ to GDP₂,and this amount is $200 billion. If the MPC is 0.8,then what is the distance between N and L or by how much did government spending change?
A) $16 billion
B) $40 billion
C) $200 billion
D) $1,000 billion
Correct Answer:
Verified
Correct Answer:
Verified
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