Assume that in India the full-employment level of output is $1,000 and the price level associated with full-employment output is 100. Also assume that India's current level of output is $1,100 and, at the price level of 100, current aggregate demand is $1,200. If the Indian government moves the economy back to the full-employment level of output by reducing government expenditures by $50, then the expenditures multiplier equals:
a. 4
b. 5
c. 2
d. 10
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