Calculate the total change in spending given the, Business Economics

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Calculate the total change in spending given the

Please round calculations to two decimal places.

a. Calculate the total change in spending given the information below. Marginal Propensity to Consume = .73 Decrease in Spending = $497 M

b. Please illustrate assuming the economy was operating at full employment prior to the change in part a. Does a GDP gap exist? If so, what type?

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