Fearing inflation it wants to increase taxes so that the, Ask an Expert

Economics

Assume that GDP is in equilibrium at its full-employment level. The federal govenrment decides to increase its expenditures by $15 billion. Fearing inflation, it wants to increase taxes so that the net change in the equilibrium level of GDP is zero. By how much should taxes be increased?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M966395

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