Economics: Principles & Policy
Economics: Principles & Policy
14th Edition
ISBN: 9781337696326
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning
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Chapter 27.B, Problem 3TY

a)

To determine

The equilibrium GDP and the budget deficit.

b)

To determine

The effect of a cut in government spending on GDP and budget deficit.

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