EBK MINDTAP ECONOMICS FOR BOYES/MELVIN'
EBK MINDTAP ECONOMICS FOR BOYES/MELVIN'
10th Edition
ISBN: 9781305387614
Author: MELVIN
Publisher: VST
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Chapter 11, Problem 13E
To determine

Assume that the equilibrium real GDP is $800 billion, a potential real GDP is $950 billion, the MPC is .80 and the MPI is .40.

Calculate the tax fall to eliminate the GDP gap.

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