[Solution] Suppose Y d = (1-t)*Y, where t is a proportional tax equal to 0.50. How much should the government increase spending if it wants to increase
Question: Suppose Y d = (1-t)*Y, where t is a proportional tax equal to 0.50.
- How much should the government increase spending if it wants to increase equilibrium GDP to 1500?
- Why is your answer different from part (a)?
Deliverable: Word Document 
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