Assume that full-employment real GDP is Y = $1,200 billion, the current equilibrium real GDP is Y = $1,600 billion, and the MPC = 0.8. In order to bring the economy to a full-employment real GDP,
A)a recessionary gap must be bridged by increasing aggregate expenditures by $80 billion.
B)an inflationary gap must be bridged by cutting aggregate expenditures by $80 billion.
C)nothing is needed to bring the economy into full employment equilibrium.
D)a recessionary gap must be bridged by increasing aggregate expenditures by $400 billion.
E)an inflationary gap must be bridged by cutting aggregate expenditures by $400 billion.

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The Answer of Assume that full-employment real GDP is Y = $1,200 billion, the current equilibrium real GDP is Y = $1,600 billion, and the MPC = 0.8. In order to bring the economy to a full-employment real GDP,
A)a recessionary gap must be bridged by increasing aggregate expenditures by $80 billion.
B)an inflationary gap must be bridged by cutting aggregate expenditures by $80 billion.
C)nothing is needed to bring the economy into full employment equilibrium.
D)a recessionary gap must be bridged by increasing aggregate expenditures by $400 billion.
E)an inflationary gap must be bridged by cutting aggregate expenditures by $400 billion.

Assume That Full-Employment Real GDP Is Y = $1,200 Billion