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Business, 14.03.2020 01:11 ash9951

The economy is in a recession. The government enacts a policy to increase spending by $2 billion. The MPS is 0.2. What would be the full increase in real GDP from the change in government spending assuming that the aggregate supply curve is horizontal across the range of GDP being considered?

A. $6 billion
B. $8 billion
C. $10 billion
D. $16 billion

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