In a certain economy, the multiplier for government purchases is 2 and the multiplier for changes in

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In a certain economy, the multiplier for government purchases is 2 and the multiplier for changes in fixed taxes is 1.5. The government then proposes to rise both spending and taxes by $100 billion. What should happen to equilibrium GDP on the demand side?

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Macroeconomics Principles And Policy

ISBN: 9780324586213

11th Edition

Authors: William J. Baumol, Alan S. Blinder

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