An economy has a fixed price level, no imports, and no income taxes. An increase in autonomous

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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. Calculate the multiplier and explain what happens to the multiplier if an income tax is introduced.

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Economics

ISBN: 9781292433639

14th Global Edition

Authors: Michael Parkin

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