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Question: suppose that instead of a fixed level of taxes...

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) Suppose that, instead of a fixed level of taxes, we had an income tax so that T = T0 + T1Y Where was the income tax rate. Derive an expression for equilibrim income for this case in which the level of tax collections depends on income. What are the expressions for government expenditure multiplier, autonmous tax multiplier and balanced budget multiplier for this case of an income tax? Do the multipliers fall or rise? Explain

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