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Suppose that the MPC is 0.8 and that $14 trillion of real GDP is currently being demanded. The government wants to increase r

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the required change in government purchase =required change in GDP/multiplier
Multiplier=1/(1-MPC)
=1/(1-0.8)
=5
the required change in government purchase =(15-14)/5
=0.2
the government should increase purchase by $0.2 trillion

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