Assume that the marginal propensity to consume in an economy is 0.75. If the economy's full- employment real GDP is $900 billion and its equilibrium real GDP is $800 billion, there is a recessionary expenditure gap of:

A.  $25 billion
B.  $100 billion
C.  $133 billion
D.  $400 billion


A.  $25 billion

Economics

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