Tax revenues typically rise along with GDP. Governments may typically spend some of this additional revenue on

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Tax revenues typically rise along with GDP. Governments may typically spend some of this additional revenue on discretionary items in the budget. Assuming this is true, how does this complicate the work of analysts trying to determine the multiplier effects of discretionary spending on GDP?
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Macroeconomics Principles Applications and Tools

ISBN: 978-0134420684

9th edition

Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez

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