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| Teaching Since: | Apr 2017 |
| Last Sign in: | 327 Weeks Ago, 4 Days Ago |
| Questions Answered: | 12843 |
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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
Assume that the government purchases multiplier is 1.8 and the tax multiplier is -1.3. Suppose the government wants to offset a $68 billion short-run decrease in output by increasing both G and T, but is determined to keep its budget position unchanged (i.e., any change in G is exactly offset by an equal change in T). In this case, the government should increase G and T by (express your answer in billions of dollars, rounded to the nearest whole number):
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