Business, 18.11.2019 20:31 lilquongohard

Which of the following statements is incorrect? a) other things unchanged, a tax reduction of $10 billion will increase the equilibrium gdp by $25 billion when the mps is .4. b) given the economy's mps, a $15 billion reduction in government spending will reduce the equilibrium gdp by more than would a $15 billion increase in taxes. c) a government surplus is anti-inflationary; a government deficit is expansionary. d) if the mpc is .8 and gdp has declined by $40 billion, this was caused by a decline in aggregate expenditures of $8 billion.

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Which of the following statements is incorrect? a) other things unchanged, a tax reduction of $10 b...

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