Ignoring any supply-side effects, to close an inflationary gap of $100 billion with a government expenditure multiplier of 5, the government could

Question

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The government expenditure multiplier of 5 means that a $1 change in government spending results in a $5 change in GDP. To close a $100 billion gap, the government should decrease spending by $20 billion ($20 billion x 5 = $100 billion).

Ignoring Any Supply-Side Effects, to Close an Inflationary Gap of $100