suppose the mpc =.9 and that policymakers want to increase equilibrium output by 1000. Also assume that policymakers want to…

suppose the mpc =.9 and that policymakers want to increase equilibrium output by 1000. Also assume that policymakers want to change government spending and taxes by the same amount in order to achieve this desired increase in output. Given this information, policymakers would have to increase simultaneously both government spending and taxes by

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