Suppose that a certain country has an MPC of 0.9 and an equilibrium real GDP of $500 billion. If government decreases taxes by $4 billion, what will be its new equilibrium real GDP ? I thought the answer was $460 billion, but that was incorrect…

Suppose that a certain country has an MPC of 0.9 and an equilibrium real GDP of $500 billion. If government decreases taxes by $4 billion, what will be its new equilibrium real GDP ? I thought the answer was $460 billion, but that was incorrect…

Survey of Economics (MindTap Course List)

9th Edition

ISBN:9781305260948

Author:Irvin B. Tucker

Publisher:Irvin B. Tucker

Chapter15: Fiscal Policy

Section: Chapter Questions

Problem 9SQ

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Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

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