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Figure 12-4 -Refer to Figure 12-4.Potential GDP Equals $500 Billion.The Economy Is

Question 8

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Figure 12-4 Figure 12-4 -Refer to Figure 12-4.Potential GDP equals $500 billion.The economy is currently producing GDP<sub>1</sub> 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
-Refer to Figure 12-4.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

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