A. Assume the following Keynesian Model of the economy C = 60 + 0.8QD QD = Q
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A. Assume the following Keynesian Model of the economy C = 60 + 0.8QD QD = Q - T (taxes are levied in lump sums) IP= 100; G = 200; T = 200
6. By this exercise, is deficit spending superior to spending under balanced budgets? Are income taxes superior to lump-sum taxes?
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Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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