This appendix shows how increased government purchases, with net taxes held constant, can eliminate a recessionary gap.
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This appendix shows how increased government purchases, with net taxes held constant, can eliminate a recessionary gap. How could a tax cut achieve the same result? Would the tax cut have to be larger than the increase in government purchases? Why or why not?
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A tax cut would increase disposable income Individual...View the full answer
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Related Book For
Economics A Contemporary Introduction
ISBN: 9781305505469
11th Edition
Authors: William A. McEachern
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