If a government raises its expenditures by $50 billion and at the same time levies a lump-sum tax of $50 billion, the net effect on the economy will be
a. increase gdp by less than $50 billion.
b. increase gdp by more than $50 billion.
c. increase gdp by $50 billion.
d. make no change in gdp
Answers: 2
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If a government raises its expenditures by $50 billion and at the same time levies a lump-sum tax of...
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