ECON MACRO
ECON MACRO
5th Edition
ISBN: 9781337000529
Author: William A. McEachern
Publisher: Cengage Learning
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Question 7.
Suppose a closed economy with no government spending which in equilibrium is
producing an output and income of 2300. Suppose also that the marginal propensity
to consume is 0.80, and that, if at full employment, the economy would produce an
output and income of 3750
By how much would the government need to cut taxes (T) to bring the economy to
full employment?
(round your answer to the nearest whole value)
Your Answer:
Answer
View hint fr
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Transcribed Image Text:Question 7. Suppose a closed economy with no government spending which in equilibrium is producing an output and income of 2300. Suppose also that the marginal propensity to consume is 0.80, and that, if at full employment, the economy would produce an output and income of 3750 By how much would the government need to cut taxes (T) to bring the economy to full employment? (round your answer to the nearest whole value) Your Answer: Answer View hint fr
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