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Assume the Current Equilibrium Level of Income Is $200 Billion

Question 203

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 0.6, what change in aggregate expenditures is needed to achieve full employment?


A) a decrease of $24 billion
B) an increase of $24 billion
C) a decrease of $16 billion
D) an increase of $16 billion

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