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2. Basic Keynesian multiplier theory suggests that if we increase government and taxes at the same and by the same amount, the effect will not be for...

2.    Basic Keynesian multiplier theory suggests that if we increase government and taxes at the same and by the same amount, the effect will not be for the two to cancel out leaving income changed, but instead ______.

Complete, indicating what the effect will be and why.

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If we increase government and taxes at the same and by the same amount, the effect will not cancel out and output and... View the full answer

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