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Use the Keynesian cross model to predict the impact on equilibrium GDP of the following. In each case, state the direction of the change and
Use the Keynesian cross model to predict the impact on equilibrium GDP of the following. In each case, state the direction of the change and give a formula for the size of the impact. a. An increase in government purchases b. An increase in taxes c. Equal-sized increases in both government purchases and taxes
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