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If short-run equilibrium output equals 10,000, the income-expenditure multiplier equals 5, the MPC equals.8, and potential output (Y*) equals 9,000, then taxes must be increased

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If short-run equilibrium output equals 10,000, the income-expenditure multiplier equals 5, the MPC equals.8, and potential output (Y*) equals 9,000, then taxes must be increased by to eliminate any output gap. Select one: a. 250 b. 20 c. 200 d. 225

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