What are lower tax effect on gdp, Microeconomics

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What are lower tax effect on gdp

Problem

In face of a economic recession, the government may choose to (1) increase its expenditure (say,100 billions) or (2) lower tax (also 100 billions). What are their effect on GDP? Which one is larger? Assume MPC is 0.7. Explain your answers in detail.

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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