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Based on recommendations from the Dept. of Commerce and Trade, the government of CYC country has decided to stimulate its economy by increasing spending during

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Based on recommendations from the Dept. of Commerce and Trade, the government of CYC country has decided to stimulate its economy by increasing spending during to 2022 2024 fiscal years. The country's economic advisors have determined that for each $10 mio. in stimulus spending received, 10% will be repaid to the government for taxes, 8% of aftertax income will be saves, and 20% will be spent on imports. The remaining balance will be spent on domestically produced goods and services. (b) If households decide to save a larger portion of their income, what effect would this have on the output, employment, and price level in the short run? What about the long run? Include two macro reasons to support your response

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