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Find out balance of a government budget

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Reference no: EM132639941

If the taxation mutliplier is -2 and the actual level of gdp is 30b less then potential level of output, to what level do autonomous taxes need to change so that the output gap is completely eliminated. Furtheremore what will the effect of this be on the balance of a government budget if it had previously been in surplus by 6b.

Reference no: EM132639941

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