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Assuming the price level is constant (e.g. SRAS is horizontal), suppose the economy is $800 billion...

Assuming the price level is constant (e.g. SRAS is horizontal), suppose the economy is $800 billion below potential GDP and the MPC is 0.75. In order to return the economy to potential GDP, government purchases would need to increase by $______ billion.

Assuming the price level is constant (e.g. SRAS is horizontal), suppose the economy is $900 billion below potential GDP and the MPC is 0.75. In order to return the economy to potential GDP, taxes would need to decrease by $______ billion.

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