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    1. Economics
    2. Macroeconomics
    3. 17159

    increase real GDP

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    Suppose that the MPC is 0.8 and that $10 trillion of real GDP is currently being demanded. The government wants to increase real GDP demanded to $11 trillion. By how much would it have to increase government spending to achieve this goal?

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    Solution Preview

    The goal is to increase real GDP demanded by $11-10= $1 trillion
    While the MPC ...

    Solution Summary

    This solution provides a detailed, step by step explanation of the given question.

    $2.19

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