Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If the taxation mutliplier is -2 and the actual level of gdp is 30b less then potential level of output, to what level do autonomous

If the taxation mutliplier is -2 and the actual level of gdp is 30b less then potential level of output, to what level do autonomous taxes need to change so that the output gap is completely eliminated. Furtheremore what will the effect of this be on the balance of a government budget if it had previously been in surplus by 6b.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Experimental Econophysics Properties And Mechanisms Of Laboratory Markets

Authors: Ji Ping Huang

1st Edition

3662442345, 9783662442340

More Books

Students also viewed these Economics questions