How much must taxes fall to eliminate the GDP gap? Assume that equilibrium real GDP is ($800)

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How much must taxes fall to eliminate the GDP gap?

Assume that equilibrium real GDP is $$800$ billion, potential real GDP is $$900$ billion, the MPC is .80, and the MPI is .40.

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Economics

ISBN: 9781032046723

9th Edition

Authors: William Boyes, Michael Melvin

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Question Posted: Apr 23, 2024 02:01 AM

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How much must taxes fall to eliminate the GDP gap? Assume that equilibrium real GDP is ($800)

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Economics

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