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Consider an economy that does not trade, has an income tax rate of 20% and a constant aggregate price level. The government expenditure multiplier is

Consider an economy that does not trade, has an income tax rate of 20% and a constant aggregate price level.  The government expenditure multiplier is 2.5. Which of the following can we conclude?

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The economics has another important finding Economics its driven in the short term by changes in aggregate expenditure or demand Suppose the macro equilibrium in an economy occurs at the potential GDP ... blur-text-image

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