macroeconomics problem
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In the simple expenditure model, assume that equilibrium output falls short of potential output by 300 units and the marginal propensity to consume = 0.8. The size of government expenditure needed to reach full employment is:
75
2 points
QUESTION 40
Again, in the simple expenditure model, assume that equilibrium output falls short of potential output by 300 units and the marginal propensity to consume = 0.8. The size of the tax cut needed to reach full employment is:
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