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Incorporate government into the table by assuming that it plans to tax and spend $24 billion at each possible level of GDP. Also assume that
Incorporate government into the table by assuming that it plans to tax and spend $24 billion at each possible level of GDP. Also assume that the tax is a personal tax and that government spending does not induce a shift in the private aggregate expenditures schedule.
What is the change in equilibrium GDP caused by the addition of government?
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