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If the short-run equilibrium output equals 10,000, the income-expenditure multiplier equals 5, the mpc equals 0.80, and potential output ( Y* ) equals 11,000, then
If the short-run equilibrium output equals 10,000, the income-expenditure multiplier equals 5, the mpc equals 0.80, and potential output (Y*) equals 11,000, then taxes be must be _______ by approximately ______ to eliminate any output gap.
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