Suppose there is a 200 billion recessionary gap if there, Ask an Expert

Economics

Suppose there is a $200 billion recessionary gap. If there are no taxes or imports to restore the economy back to potential GDP how much should government expenditure be changed if the marginal propensity to consume is 0.75? Does government expenditure need to be increased or decreased?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91299363

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