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Derive the equilibrium for proportional tax both algebraically and diagrammatically What is the slope of the new aggregate expenditure curve What is the new multiplier

Derive the equilibrium for proportional tax both algebraically and diagrammatically. What is the slope of the new aggregate expenditure curve? What is the new multiplier?

Question: Derive the IS equation with proportional tax, and compare it with lumpsum tax case. Compare the slope of IS in the two cases.

Apr 29 2020 View more View Less

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