Multiple Choice
Assume the current equilibrium level of income is $200 billion as compared to the full-employment income level of $240 billion.If the MPC is .625,what change in aggregate expenditures is needed to achieve full employment?
A) A decrease of $12 billion.
B) An increase of $25 billion.
C) An increase of $10 billion.
D) An increase of $15 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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