In the first macroeconomics we learned that output

In the first macroeconomics we learned that output -...

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In the first macroeconomics we learned that output, or national income, can be  described by the equation Y = C + I + G + NX where Y is output, or national income, C  is consumption spending, I is investment spending, G is government spending, and NX  is net exports. This equation can be expanded to represent taxes by the equation Y =  C(Y - T) + I + G + NX. In this case, C(Y - T) captures the idea that consumption  spending is based on both income and taxes. Disposable income is the amount of  money that can be spent on consumption after taxes are removed from total income.  The new form of the output, or national income, equation reflects both elements of fiscal  policy and is most useful for analysis of the effects of fiscal policy changes.  Types of Fiscal Policy  The government has control over both taxes and government spending. When the 
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In the first macroeconomics we learned that output -...

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