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Consider the diagram… Show more “border: 0px; height: 0px;

Paper help Economics Consider the diagram… Show more “border: 0px; height: 0px;

Economics

Consider the diagram… Show more “border: 0px; height: 0px;

Consider the diagram… Show more “border: 0px; height: 0px; margin: 0px; padding: 0px; width: 707px”> 13-10. Consider the diagram in the next column, in which the current short-run equilibrium is at point A, and answer the questions that follow. “MsoListParagraphCxSpFirst”>a. “font:7pt/normal ‘Times New Roman’;”> What type of gap exists at point A? “MsoListParagraphCxSpLast”>b. “font:7pt/normal ‘Times New Roman’;”> If the marginal propensity to consume equals 0.75, what change in government spending financed by borrowing form the private sector could eliminate the gap identified in part (a)? Explain • Show less

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