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Kipish [7]
3 years ago
15

The marginal propensity to consume is 0.75 and the economy is operating at full-employment real GDP at $510 billion. If a $20 bi

llion personal consumption increase is matched by an equal increase in personal taxes, long-run real GDP will
Business
2 answers:
KiRa [710]3 years ago
6 0

Answer:

Long run real GDP will remain unchanged.

Explanation:

The increase in personal taxes (-$20 billion) would offset any increase in real GDP generated by the increase in private consumption ($20 billion). Nominal GDP can be affected and increase by $20 billion, but the effect would be given by an increase in general price level (inflation), not by an increase in real money.

Andreyy893 years ago
6 0

Answer:

<em>woiejjiikr</em>

<em><u>ididjkr</u></em>

<h3><em><u>riririrjr</u></em></h3>
  1. <em><u>if</u></em>
  2. <em><u>ididd</u></em>
  3. <em><u>wo</u></em><em><u> I</u></em><em><u> am</u></em><em><u> not</u></em><em><u> able</u></em><em><u> to</u></em><em><u> do</u></em><em><u> we</u></em>
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