If MPC = 0

question 183

Multiple Choice

If MPC = 0.9, equilibrium real GDP is $1,000, and full-employment real GDP is $2,000, then how much should government spending change to bring about full employment?

• A) +1,000.
• B) -100.
• C) +900.
• D) +100.
• E) -0.9.

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