Assume the current equilibrium level of income is $200 billion as compared to the full - employment income level of $240 billion. If the MPC is 0.625, what change in government spending is needed to achieve full employment? Multiple Choice An increase of $25 billion. A decrease of $12 billion. An increase of $15 billion. An increase of $10 billion.

Assume the current equilibrium level of income is $200 billion as compared to the full - employment income level of $240 billion. If the MPC is 0.625, what change in government spending is needed to achieve full employment? Multiple Choice An increase of $25 billion. A decrease of $12 billion. An increase of $15 billion. An increase of $10 billion.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter15: Fiscal Policy

Section: Chapter Questions

Problem 7SQP

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