Question
An economy has an inflationary GDP gap of $400 and an AD excess of $600 billion.It's mps is .8. What would be an appropriate change
An economy has an inflationary GDP gap of $400 and an AD excess of $600 billion.It's mps is .8. What would be an appropriate change in taxes if the government wanted to eliminate the gap?
A.Raise taxes by $100 billion.
B.Raise taxes by $150 billion.
C.Raise taxes by $120 billion.
D.Raise taxes by $80 billion.
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Slavery And American Economic Development
Authors: Gavin Wright
1st Edition
0807152285, 9780807152287
