In the Basic Keynesian Model,to Close a Recessionary Gap of $10

question 36

Multiple Choice

In the basic Keynesian model,to close a recessionary gap of $10 billion,government purchases must be

• A) increased by $10 billion.
• B) decreased by $10 billion.
• C) increased by more than $10 billion.
• D) increased by less than $10 billion.
• E) decreased by less than $10 billion.

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