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I need help with my intro to economics class!!?

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If the output gap is 200 billions while the multiplier is known to be 2, then a 50 billions increase in government expenditures will close the gap.

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  1. False.

    If output gap is 200 billions (below potential) and multiplier is 2 then gov spending of 50 billions will close only 50x2=100 billions of this gap so 200-100=100 billions gap will remain.

    In order to close gap gov expenditures should be 200/2=100 billions.

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