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Assume in economy is in recession with a mpc of 075 and

Assume in economy is in recession with a MPC of 0.75 and there is a GDP gap of $100 billion. How much must government spending increase to eliminate the gap? Instead of increasing government spending by the amount that you calculated what would be the effect of the government cutting taxes by this amount?

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Business Economics: Assume in economy is in recession with a mpc of 075 and

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Business Economics: Assume in economy is in recession with a mpc of 075 and

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