(Answered) Real GDP to equal potential GDP

Economics

Problem: Real GDP is equal to $17.3 trillion and potential GDP is equal to $18.1 trillion. If the marginal propensity to consume is equal to 0.80 and the government wants real GDP to equal potential GDP, then they should change government spending by how many trillions of dollars? Explain your answers and provides examples.

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Macroeconomics, Economics

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