Which country suffer the greatest decline in employment


Suppose that two economies initially have the same level of real income and both suffer unanticipated declines in their sales of exports of $50 billion. Country "A" has higher tax rates and a higher level of government spending than economy "B". Otherwise, the two economies are similar in every respect. Which country will suffer the greatest decline in employment as a result of the decline in exports?

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Microeconomics: Which country suffer the greatest decline in employment
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