An economy is at a real GDP level of $800 billion. Autonomous planned spending falls by $40 billion. If the MPC = .8, what will be the new real GDP level after the full potential multiplier effect occurs?
A) $750 billion
B) $600 billion
C) $1,000 billion or $1 trillion
D) $1,130 billion or $1.230 trillion

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The Answer of An economy is at a real GDP level of $800 billion. Autonomous planned spending falls by $40 billion. If the MPC = .8, what will be the new real GDP level after the full potential multiplier effect occurs?
A) $750 billion
B) $600 billion
C) $1,000 billion or $1 trillion
D) $1,130 billion or $1.230 trillion

An Economy Is at a Real GDP Level of $800