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Special Interest Group Q Receives a 1\10,000th Slice of the Economic

question 66

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Special interest group Q receives a 1\10,000th slice of the economic pie.  Its net benefit from either an economic growth policy or a transfer policy is $50,000.  In order for group Q to be indifferent between the two policies, the economic growth policy would have to make the size of the economic pie (Real GDP) grow by  _________________.  This type of analysis is used to show that special interest groups tend press government for ______________ instead of ________________.


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