QUESTION 4 Suppose the real GDP in a fictional economy currently equals to 160 million USD, the potential real GDP equals to 180, and the government expenditures multiplier is 4. The government has to increase its expenditures by . in order to bring back the economy to its long-run real GDP equilibrium.

QUESTION 4 Suppose the real GDP in a fictional economy currently equals to 160 million USD, the potential real GDP equals to 180, and the government expenditures multiplier is 4. The government has to increase its expenditures by . in order to bring back the economy to its long-run real GDP equilibrium.

Survey of Economics (MindTap Course List)

9th Edition

ISBN:9781305260948

Author:Irvin B. Tucker

Publisher:Irvin B. Tucker

Chapter15: Fiscal Policy

Section: Chapter Questions

Problem 19SQ

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