Illustrate the effect of a decrease in autonomous net taxes


Problem

Use the diagram with the helping line to draw a level of aggregate expenditure that would lead to an economy at an equilibrium with a real GDP of $9 trillion. Illustrate the effect of a decrease in autonomous net taxes of $200 billion when the marginal propensity to consume is 0.75.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Illustrate the effect of a decrease in autonomous net taxes
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