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Recall the PAE model you studied in class, where The unlabelled diagram belo...
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Recall the PAE model you studied in class, where
The unlabelled diagram below presents the initial equilibrium in Country X.
Assume that the government of Country X has increased taxes (T) and its expenditures (G), such that the change in T equals the change in G, keeping the government budget at balance. Which diagram below is the best representation of this change?
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