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Business, 25.11.2021 14:10 tashanicole

(b) Suppose the economy is initially as in part (a). Then suppose a decline in business confidence reduces investment to 100. Calculate the new level of equilibrium output and the new budget deficit. Intuitively, why has the budget deficit changed even though fiscal policy is unchanged

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(b) Suppose the economy is initially as in part (a). Then suppose a decline in business confidence r...
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