QUESTION 1 If the absolute value of the tax multiplier equals 1.6, real GDP is $13 trillion, and potential real GDP is $13.4 trillion, then
QUESTION 1 If the absolute value of the tax multiplier equals 1.6, real GDP is $13 trillion, and potential real GDP is $13.4 trillion, then taxes would need to be cut by to restore the economy to potential real GDP. $250 billion $400 billion $640 billion ONone of these are correct. Taxes should be increased in this case
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