Please classify the five arguments according to whether they are used by advocates of the government spending approach or the

tax cut approach to fighting recessions.

Tax cut annroach

Answer Bank

Consumers usually save part of their income, while the government spends it all.

If targeted correctly, aggregate supply increases as well as aggregate demand.

Government spending will result in higher taxes later.

To be effective, tax cuts must be seen as permanent, rather than temporary.

Allows consumers, not politicians, to decide what goods and services are produced.