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Question
Situation 20-2
Assume a closed economy. Suppose that autonomous consumption equals $400, planned investment equals $500, government expenditure equals $200, net taxes equals $50, and the mpc equals 0.9.
Using the information in situation 20-2, if government increases their spending by $50 and increases net taxes by 50, then equilibrium aggregate output will change by
A) -$100.
B) -$50.
C) $50.
D) $100.
Answer
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Related questions
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