=+change government spending, it must always change taxes by the same amount, that is, . Does the

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=+change government spending, it must always change taxes by the same amount, that is, . Does the constitutional amendment imply that the government can no longer use fiscal policy to affect employment and output? (Hint: Analyze a “balancedbudget” increase in government spending, one that is accompanied by an equal tax hike.)

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International Economics

ISBN: 9780132146654

9th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc Melitz

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