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need help please 1. Suppose an economy is currently under in a Recessionary Gap. The Potential Output of the economy is $850 billion. Please use

need help please

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1. Suppose an economy is currently under in a Recessionary Gap. The Potential Output of the economy is $850 billion. Please use the following information to answer the questions below: Assumptions a) Government revenues come from total income taxes. b) Consumers only react to changes in taxes, and there is no autonomous consumption c) Investment only reacts to changes in the interest rate d) The golden assumption of Neoclassical Economics: Investment = Savings Total Income- 600 Consumption- 234 Investment- 156 Exports- 320 Imports- 200 Gov Spending- 120 Revenues- 210 Marginal propensity to consume- 0.6 Tax rate- 0.35 Multiplier- 4.047619 Interest rate- 0.025

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