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Suppose that equilibrium income is 3400, the marginal propensity to save is 0.25, the marginal tax rate is 0.1 and the marginal propensity to import
Suppose that equilibrium income is 3400, the marginal propensity to save is 0.25, the marginal tax rate is 0.1 and the marginal propensity to import is 0.2.
If the natural level of output/income is equal to 3050, by how much will autonomous taxation need to change to close the gap and move the economy to the natural level of output/income?
Provide answer to 1 decimal point.
If a decrease in autonomous taxation is required you must place a negative sign in front of your answer.
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