Suppose that the government's budget deficit is $200 billion and the equilibrium level of output is at $8 trillion. If the output level necessary for full employment is $8.1 trillion, by how much must the government increase spending and taxes to stimulate the economy?

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The Answer of Suppose that the government's budget deficit is $200 billion and the equilibrium level of output is at $8 trillion. If the output level necessary for full employment is $8.1 trillion, by how much must the government increase spending and taxes to stimulate the economy?

Suppose That the Government's Budget Deficit Is $200 Billion and the Equilibrium