Assume consumer spending is given by the equation

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Assume consumer spending is given by the equation C = 275 + 0.8[Y - T], investment spending is equal to 425, government spending is equal to 250, and taxes (T) are equal to 250, while full employment real GDP is equal to 4050. According to the simple Keynesian model, if policymakers seek to close the resulting __________ gap, one option would be to change government spending to ______.

Reference no: EM131098617

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Assume consumer spending is given by the equation : Assume consumer spending is given by the equation C = 275 + 0.8[Y - T], investment spending is equal to 425, government spending is equal to 250, and taxes (T) are equal to 250, while full employment real GDP is equal to 4050. According to the simple..

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