The economy is experiencing a contraction recessionary gap, Microeconomics

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The economy is experiencing a contraction recessionary gap

The economy is experiencing a contraction (recessionary gap) of $400 billion. What government spending stimulus would you recommend to move the economy back to full employment if the MPC is 0.75? Would your policy be any different if the MPC were 0.66?

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Microeconomics: The economy is experiencing a contraction recessionary gap

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Microeconomics: The economy is experiencing a contraction recessionary gap

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