Explain the government spending multiplier.
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Q39: Discuss an important difference between the spending
Q40: Q41: Write out the formula for the tax Q42: Suppose planned investment drops by 200. Q43: Calculate how much output would expand by Q46: If the tax multiplier is -2 what Q47: Calculate the value of the tax multiplier Q48: The intuition behind the balanced budget multiplier Q49: Suppose that the government's budget deficit is Q55: Assume an economy is represented by the
(a) First,
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