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By how much does Y decrease.... 1 _ Y: I G T 1C1[C0+ + C1] E By how much does Y decrease when tax increases

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By how much does Y decrease....

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1 _ Y: I G T 1C1[C0+ + C1] E" By how much does Y decrease when tax increases by 1 unit? 2. Suppose the economy starts with a balanced budget, G = T. Now both G and T increase by 1 unit each. What is the change in equilibrium GDP? 3. Are balanced budget changes in G and T macroeconomically neutral

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