do you can you please 1 answer below »
suppose the price level is fixed, the MPC is .8, the GDP gap is a negative $200 billion. To achieve full-employment output (exactly), government should:
A. increase government expenditures by $200 billion.
B. reduce taxes by $200 billion.
C. increase government expenditures by $40 billion.
D. reduce taxes by $160 billion
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