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Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884 Exercise 17
Use the following data to work Problem.
An economy has a fixed price level, no imports, and no income taxes. An increase in autonomous expenditure of $2 trillion increases equilibrium expenditure by $8 trillion.
What happens to the multiplier if an income tax is introduced?
An economy has a fixed price level, no imports, and no income taxes. An increase in autonomous expenditure of $2 trillion increases equilibrium expenditure by $8 trillion.
What happens to the multiplier if an income tax is introduced?
Explanation
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Verified
An income tax if introduced it will prod...
Macroeconomics 11th Edition by Michael Parkin
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