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    Exam 22: Adding Government and Trade to the Simple Macro Model
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    Consider the Government's Budget Balance
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Consider the Government's Budget Balance

Question 89

Question 89

Multiple Choice

Consider the government's budget balance.Suppose G = 2500 and the government's net tax revenue is equal to 0.2Y.The government budget is balanced when Y equals


A) 9500.
B) 10 500.
C) 11 500.
D) 12 500.
E) 13 500.

Correct Answer:

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