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1. Given an economy with the consumption function C = 4800 + 9Yd - a) If the government increases government spending by 700, how much
1. Given an economy with the consumption function C = 4800 + 9Yd - a) If the government increases government spending by 700, how much will GDP increase initially? b) If the government, instead, cuts taxes by 700, how much will GDP increase initially? c) How much would the initial increase of 700 in government spending increase GDP over time? d) How much would the 700 tax cut increase GDP over time
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