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Fiscal Policy Simulation

   
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Title: Fiscal Policy Simulation
 
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Date: July 3, 2007
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In order to tackle this recurring problem, the government decides again to raise income tax rate by 2.5 percent. This decision proved to be very successful and enabled the economy to get back on track. The income tax rate increase provided income tax revenues of $500 million, will lowering inflation from 8...
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This decision proved to be very successful and enabled the economy to get back on track. The income tax rate increase provided income tax revenues of $500 million, will lowering inflation from 8.98 to 5.23 percent. Implementing this fiscal policy will lead to a real GDP of $41...
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