IDNLearn.com makes it easy to find accurate answers to your specific questions. Ask any question and receive comprehensive, well-informed responses from our dedicated team of experts.

Actual output is $2,000, potential output is $2,500, and the marginal propensity to consume (MPC) is 0.8. Which will return the economy to potential output?
O Increase government spending by $125.
O Increase government spending by $500.
O Decrease taxes by $125.
O Increase taxes by $125.