Consider a country with the national income of $32 billion, the amount of taxes paid by...

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Consider a country with the national income of $32 billion, the amount of taxes paid by households of $12 billion, and househ Suppose now the countrys national income increases to $35 billion Assuming the amount paid in taxes is fixed at $12 billion

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Answer 1

Answer #1

Y=32 bellion Y = Gelax = 20 billion tax=$12 bellion Compe=16 MPe=0.7 c=carmpayo e = 16 = G +0.7120) Ta=2] c=2+0.7% c=2+0.77 e

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