24. Using the macroeconomic data in #21 above and assuming (i) a full employment economic output of $900 (Be careful: Not $800 anymore!) and (ii) due to budget constrain Congress could only authorize an increase of government spending in the amount of $5 ~ no more or no less than that!. Now you as the government's chief economic advisor, you will have to compute the amount of taxes that need to be cut to close up the remaining GDP gap. Government now needs to reduce taxes by, to close up the remaining GDP gap. --- - $1.25 $1.75 $1.67 $1.50 cannot be computed based on information provided

24. Using the macroeconomic data in #21 above and assuming (i) a full employment economic output of $900 (Be careful: Not $800 anymore!) and (ii) due to budget constrain Congress could only authorize an increase of government spending in the amount of $5 ~ no more or no less than that!. Now you as the government's chief economic advisor, you will have to compute the amount of taxes that need to be cut to close up the remaining GDP gap. Government now needs to reduce taxes by, to close up the remaining GDP gap. --- - $1.25 $1.75 $1.67 $1.50 cannot be computed based on information provided

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter1: Welcome To Economics!

Section: Chapter Questions

Problem 26CTQ: Suppose, as an economist, you are asked to analyze an issue unlike anything you have ever done...

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