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Assume That a GDP Gap Can Be Closed by a $200

question 71

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Assume that a GDP gap can be closed by a $200 initial change in planned spending.The MPS is 0.3 and the MPI equals 0.1.If the economy is currently in equilibrium with an income level of $600, potential GDP equals:


Definitions:

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The potential or ability of an infant to develop skills and accomplish tasks, often measured through milestones in physical, cognitive, and emotional development.

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The enhancement or improvement in the capacity to retain and recall information over time.

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