EBK BRIEF PRINCIPLES OF MACROECONOMICS
EBK BRIEF PRINCIPLES OF MACROECONOMICS
7th Edition
ISBN: 8220100469886
Author: Mankiw
Publisher: Cengage Learning US
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Chapter 16, Problem 8PA

Subpart (a):

To determine

The initial effect of tax reduction on aggregate demand.

Subpart (b):

To determine

The total effects of tax reduction on aggregate demand.

Subpart (c):

To determine

The comparison of total effects of tax reduction to the total effects of increase in Government purchases.

Subpart (d):

To determine

How can the Government increase aggregate demand without changing the government’s budget deficit.

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