Figure 23-4 -Refer to Figure 23-4. Potential GDP Equals $500 Billion. the Equals

Multiple Choice

Figure 23-4

-Refer to Figure 23-4. Potential GDP equals $500 billion. The economy is currently producing GDP₁ which is equal to $450 billion. If the MPC is 0.8,then how much must autonomous spending change for the economy to move to potential GDP?

A) -$40 billion
B) -$10 billion
C) $10 billion
D) $40 billion