A $40 reduction in taxes increases Real GDP by $100, and a $50 increase in government spending

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A $40 reduction in taxes increases Real GDP by $100, and a $50 increase in government spending increases Real GDP by $120. What is the tax multiplier? What is the government spending multiplier?

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Economics

ISBN: 978-1285738321

12th edition

Authors: Roger A. Arnold

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Question Posted: Feb 12, 2016 07:35 AM

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A $40 reduction in taxes increases Real GDP by $100, and a $50 increase in government spending

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The tax multiplier the change in Rea...View the full answer

Economics

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