Figure 23-4 -Refer to Figure 23-4. Potential GDP Equals $100 Billion. the $100

question 206

Multiple Choice

Figure 23-4
-Refer to Figure 23-4. Potential GDP equals $100 billion. The economy is currently producing GDP₁ which is equal to $90 billion. If the MPC is 0.8, then how much must autonomous spending change for the economy to move to potential GDP?

• A) -$18 billion
• B) -$2 billion
• C) $2 billion
• D) $18 billion