Multiple Choice
Assume that the marginal propensity to consume in an economy is 0.75. If the economy's full-employment real GDP is $900 billion and its equilibrium real GDP is $800 billion, there is a recessionary expenditure gap of:
A) $25 billion
B) $100 billion
C) $133 billion
D) $400 billion
Correct Answer:
Verified
Correct Answer:
Verified
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