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= ( ) ( ) (e) (4 points) Solve for government budget surplus as a function of , , and the multiplier [Hint: The only

= ( ) ( )

(e) (4 points) Solve for government budget surplus as a function of , , and the multiplier [Hint: The only difference between and , is that is a function of and is a function of ] .

(f) (7 points) Using graphs showing how the government fiscal surplus responds over time, analyze how the shock in part affects the government budget.

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