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Suppose that the government increases expenditures by $150 billion while increasing taxes by $150 billion. Suppose that the MPC is .80 and that there are no crowding out or accelerator effects. What is the combined effects of these changes? Why is the combined change not equal to zero?
Expert Power
The influence one possesses due to their skills, knowledge, or expertise in a particular field or domain.
Coercive Techniques
Methods used to enforce compliance or change behavior through threats or force.
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Political Approach
A method or strategy applied in the analysis or practice of politics, often focusing on the use of power, governance, and policy-making.
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