Economics 012-3-6-2008

Economics 012-3-6-2008 - • They attract residents •...

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Economics 012 3/6/2008 - What happens to the economy when we introduce the government o Complicate the investment/savings idea o I=S + (T-G) o Introduce taxes MPC lower Multiplier lower When we introduce taxes C line goes down= slope lower There are 10 states with no income tax
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Unformatted text preview: • They attract residents • Most growth, most population influx If we raise taxes, GDP line shifts down= people have less money to spend-Taxes out in a recession and expenditures in a boom...
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This note was uploaded on 10/23/2010 for the course ECON 012 taught by Professor Joutz during the Spring '08 term at GWU.

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