12.1 If a GBP 10,000,000 increase in government expenditure resulted in a GBP 14,000,000 increase in real GDP in the United Kingdom, what would have been the change in real GDP if the government had instead cut taxes by GBP 10,000,000? Note: You can assume a constant investment and real interest rate for this question.

12.1 If a GBP 10,000,000 increase in government expenditure resulted in a GBP 14,000,000 increase in real GDP in the United Kingdom, what would have been the change in real GDP if the government had instead cut taxes by GBP 10,000,000? Note: You can assume a constant investment and real interest rate for this question.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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