For any change in net taxes,we can calculate the resulting change in equilibrium GDP by using the following formula:
A) change in GDP = -MPC/(1 - MPC)
B) change in GDP = [-MPC/(1 - MPC) ]× change in taxes
C) change in GDP = MPC ×change in taxes
D) change in GDP = MPC/(1 - MPC)
E) change in GDP = [-MPC/(1 - MPC) ] + change in taxes
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