(Answered) Suppose the economy’s multiplier is 5 . Other things equal, a $5 billion decrease in government…

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Suppose the economy’s multiplier is 5. Other things equal, a $5 billion decrease in government expenditures on national defense will cause equilibrium GDP to:
decrease by $25 billion.
decrease by $50 billion.
decrease by $5 billion.
increase by $25 billion.

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