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In a basic Keynesian model with a government sector Yr =C-i + I: +0; where It : 269, Gt 2 310 (exogenously determined Government expenditure),
In a basic Keynesian model with a government sector Yr =C-i + I: +0; where It : 269, Gt 2 310 (exogenously determined Government expenditure), and C, = so + 0.31311, .4 . . . wherehns disposable (aftertax) Income. Assume that all income is taxed at a rate of 25%. Government expenditure is then increased to 450 and kept at this level. What tax revenue can the government expect to raise five time periods after this initial rise in expenditure
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