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Answer whichever you can! 17. Refer to the following data. Calculate the budget deficit or surplus for Year 3. Government spending Tax Revenues GDP Year

Answer whichever you can!

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17. Refer to the following data. Calculate the budget deficit or surplus for Year 3. Government spending Tax Revenues GDP Year 1 $450 $425 $2,000 b Year 2 500 450 3,000 Year 3 690 650 4,000 18. If the government's budget is balanced, what happens to the size of the Public (National) Debt? (Increases. Decreases, goes to zero, Remains the same} 19. What part of the government is responsible for determining fiscal policy? 20. Suppose the Government decreases taxes by $100 billion. If the marginal propensity to 3 consume (MPC) is 0.90 by what amount would GDP increase? Show work. \\ 21. According to Keynes, why is Government involvement in the marketplace necessary when there isa recession? _

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