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CH28: Principles of Macroeconomics Question & Answers
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CH28: Principles of Macroeconomics Question & Answers Currently, GDP = $800 billion and the government imposes a $25 billion tax. If the MPC=.8, what will be the new equilibrium GDP? - ANSWER: GDP falls to $700B. When the government imposes a lump-sum tax on its citizens, this has the effect of...
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