GDP : LUSENET : Economic History (and Related Observations) : One Thread

Assuming a marginal propensity to save of 0.5, gross domestic product of $600 billion and equilibrium in the Classical Range of the aggregate supply curve, what would be the increase in real GDP of a tax cut of $10 billion without a concomitant reduction in government spending?

-- Helen D'Imperio (, October 09, 2003

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