Question
If real GDP is $800 billion below potential GDP and the tax multiplier equals -1.5, then how much would the government need to change taxes
If real GDP is $800 billion below potential GDP and the tax multiplier equals -1.5, then how much would the government need to change taxes to bring the economy to equilibrium at potential?
The government would need to cut........... billion.
taxes by $
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Economics Today The Macro View
Authors: Roger LeRoy Miller
18th Edition
0133884872, 978-0133884876
