Suppose a closed economy with no government spending which in equilibrium is producing an output...
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Suppose a closed economy with no government spending which in equilibrium is producing an output and income of 2350 Suppose also that the marginal propensity to consume is 0 75 and that if at full employment the economy would produce an output and income of 3150 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
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