It will be essential to increase level of aggregate income

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Assume that the current level of income in the economy is $700 billion. It is determined that in order to reduce the unemployment rate to the desired level, it will be necessary to increase the level of aggregate income to $760 billion. Assume that S = -25 + .2Yd. How much would taxes have to be cut in order to accomplish the desired outcome?

Reference no: EM13389038

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