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Consumption (C), Government Spending (G) and Net Taxes (T) functions of an economy. (Note that AE already includes C, I, G, X, and IM) AE
Consumption (C), Government Spending (G) and Net Taxes (T) functions of an economy. (Note that AE already includes C, I, G, X, and IM) AE = 4,000 + 0.6Y C = 200 + 0.8Y G = 600 T = 0.25YWhat is the change in the equilibrium income caused by an increase in Fixed Taxes of 4 (i.e., change in Fixed Taxes = +4)? A) -8 B) +8 C) -10 D) +10 E) -12
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
