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    Examples in Keynesian Economics

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    Dear OTA: Please help me complete this task. These are the questions I need answered but I sent an attachment through to that explains what I ultimately need done. Thank you so much!!!!

    ? Identify and describe the effect of changing the tax rate on disposable income and consumption, as well as the post-tax multiplier. You should use the formulas discussed in the Reading pages and the text to describe the effects of the changing tax rate on disposable income, consumption, and the multiplier.
    ? Describe the likely changes to equilibrium output and price levels resulting from the change in the tax rates. Begin by describing the effects on aggregate supply and/or demand to fully demonstrate the connection between the tax rate change and equilibrium.
    ? Describe the change in tax revenues for the government in the new equilibrium, in both the short and longer terms.

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    Solution Summary

    Examples in Keynesian Economics is determined.