Macroland's real GDP level is at an equilibrium of $700 billion, and its natural rate of real GDP is $880 billion. The marginal propensity to consume is 2/3. Government leaders decide to use fiscal policy to move the economy to full employment. How much would they choose to change government purchases? Explain how that amount is determined.

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The Answer of Macroland's real GDP level is at an equilibrium of $700 billion, and its natural rate of real GDP is $880 billion. The marginal propensity to consume is 2/3. Government leaders decide to use fiscal policy to move the economy to full employment. How much would they choose to change government purchases? Explain how that amount is determined.

Macroland's Real GDP Level Is at an Equilibrium of $700