The economy is In a recession. The government enacts a policy to increase spending by S2 billon. The MPS IS 0.25. What would be the full increase in real GDP from the change in government spending. assuming that the aggregate supply curve is horizontal across the range of GDP being considered? Multiple Choice $8 billion $2 billion $16 bilon $4 billon O O O O
The economy is In a recession. The government enacts a policy to increase spending by S2 billon. The MPS IS 0.25. What would be the full increase in real GDP from the change in government spending. assuming that the aggregate supply curve is horizontal across the range of GDP being considered? Multiple Choice $8 billion $2 billion $16 bilon $4 billon O O O O
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Transcribed Image Text:The economy Is In a recession. The government enacts a policy to Increase spending by $2 billion. The MPS Is 0.25. What would be the full Increase in real GDP from the change In government spending, assuming that the aggregate supply curve Is horizontal across the range of GDP
belng considered?
Multiple Cholce
$8 billion
$2 billion
$16 billion
$4 billion
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