Question
Assume the tax multiplier is estimated to be 1.3 1.3 and the aggregate supply curve has its usual upward slope. Suppose the government lowers taxes
Assume the tax multiplier is estimated to be 1.3
1.3 and the aggregate supply curve has its usual upward slope. Suppose the government lowers taxes by $125
125 million.
Aggregate demand will
increase
decrease
by $
nothing
million. (Enter your response rounded to one decimalplace.)
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The Rise And Fall Of Neoliberal Capitalism
Authors: David M Kotz
1st Edition
0674725654, 9780674725652
