ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An economy is operating at an output at $3, 000 and potential output is $4, 000. If the MPC is 0.8, how much should the government change spending by?
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Increase government spending by $1, 000
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Decrease government spending by $500
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Increase government spending by $250
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Increase government spending by $200
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Decrease government spending by $200
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Explanation:
There is 1 question to complete.