To avoid any problems of inflation or unemployment

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Assume that production in the United States is valued at $120,000. National income is therefore $120,000. Of their income, workers save $4400, pay $10,000 in taxes, spend $102,000 on consumer goods, and spend $3500 on imports. Businesses spend $8,000 in new investment spending. And, foreigners spend $1100 on exports. To avoid any problems of inflation or unemployment, the government should have a budget deficit or surplus of

Reference no: EM131424612

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