Assume that the consumption function is given by C- 300 + 3/4 Y. The economy has a level of government spending equal to

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Assume That The Consumption Function Is Given By C 300 3 4 Y The Economy Has A Level Of Government Spending Equal To 1 (50.7 KiB) Viewed 14 times

Assume that the consumption function is given by C- 300 + 3/4 Y. The economy has a level of government spending equal to 600 units, and the equilibrium level de GDP equal to 6000, but is below potential level of GDP which is equal to 6,800. Which of the following could bring the economy back to potential level of GDP O A a LEVEL of government spending equalG- 800 units. OB. INCREASING G in 200 units. O c. an increase in autonomous consumption in 200 units. D. All of the options are correct