What is the approximate new variable tax rate the government needs to charge to fix the gap in this economy?
Potential GDP (also known as YF) = 35 billion pula.
Unemployment rate = 2.8%
Current CPI = 117.5
Base year = 2000
Autonomous consumption = 3 billion pula
Investment = 4.5 billion pula
Trade surplus = 5 billion pula
Current average income tax rate = 25%
Current fixed taxes = 0
Government expenditure = 5 billion pula
MPC = 0.75

O 22.8%
O 32.3%
O 17.5%
O 41.5%