Assume that equilibrium real GDP is $800 Billion, potential real GDP is $900 Billion, the MPC is 0.80, and the MPI is 0.40. What is the size of of
Assume that equilibrium real GDP is $800 Billion, potential real GDP is $900 Billion, the MPC is 0.80, and the MPI is 0.40. What is the size of of the GDP gap?How much must government spending increase to eliminate the GDP gap?
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