How much taxes have to be cut to accomplish desired outcome


Assume that the current level of income in the economy is $700 billion. It is determined that in order to reduce the unemployment rate to the desired level, it will be necessary to increase the level of aggregate income to $760 billion. Assume that S = -25 + .2Yd. How much would taxes have to be cut in order to accomplish the desired outcome?

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Microeconomics: How much taxes have to be cut to accomplish desired outcome
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