Given the b=mpc=.8, and Yf-Ye=400, how much government spending is necessary to close the recessionary gap, and how much tax cut is necessary to get to full employment?
Given the b=mpc=.8, and Yf-Ye=400, how much government spending is necessary to close the recessionary gap, and how much tax cut is necessary to get to full employment?
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 14E
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Given the b=mpc=.8, and Yf-Ye=400, how much government spending is necessary to close the recessionary gap, and how much tax cut is necessary to get to full employment?
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