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a . Incorporate government into the table ( in the gray - shaded cells ) by assuming that it plans to tax and spend $
a Incorporate government into the table in the grayshaded cells by assuming that it plans to tax and spend $ billion at each possible level of GDP Also assume that the tax is a personal tax and that government spending does not induce a shift in the private aggregate expenditures schedule.
Instructions: Enter your answers as a whole number.
tabletable Real DomesticOutput GDP DIBillionstable AggregateExpendituresPrivate ClosedEconomy Billionstable Exports,Billionstable Imports,Billionstable Net Exports,Billionstable AggregateExpendituresPrivate OpenEconomy BillionstableGovernmentExpendituresBillionstable AggregateExpendituresOpenEconomy withGovernmentBillions$$$$$$
b What is the change in equilibrium GDP caused by the addition of government?
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