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For This Question,assume That Taxes Are Independent of Income (I

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For this question,assume that taxes are independent of income (i.e.,the income tax rate is zero).Now suppose that fiscal policy makers wish to decrease equilibrium output by $500 billion.Further suppose that policy makers can choose one of the following two options: (1)change in government spending; or (2)change in taxes.Compare and explain the relative size of the changes in government spending and taxes needed to obtain this desired change in output.

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The change in taxes will have to be larg...

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