Now, Congress steps in and insists that the policy be "deficit neutral" so that the government deficit will not be affected. In other words, taxes will decrease by an equivalent $50 billion so as to keep the deficit constant. What will be the effect on real GDP, again assuming no mitigating factors?

Now, Congress steps in and insists that the policy be "deficit neutral" so that the government deficit will not be affected. In other words, taxes will decrease by an equivalent $50 billion so as to keep the deficit constant. What will be the effect on real GDP, again assuming no mitigating factors?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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