When both autonomous government spending and autonomous taxes are each reduced by $100, in an economy with MPC-75, the GDP will (ceteris paribus) according to the balanced budget concept predictably O decline by $150 O remain unchanged. O decline by $300 O decline by $400. O none of the other answers are correct

When both autonomous government spending and autonomous taxes are each reduced by $100, in an economy with MPC-75, the GDP will (ceteris paribus) according to the balanced budget concept predictably O decline by $150 O remain unchanged. O decline by $300 O decline by $400. O none of the other answers are correct

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section: Chapter Questions

Problem 1DQ

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