Economics:
Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
Question
Chapter 11, Problem 13E
To determine

Assume that the equilibrium real GDP is $800 billion, a potential real GDP is $950 billion, the MPC is .80 and the MPI is .40.

Calculate the tax fall to eliminate the GDP gap.

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