Assume the government is running a budget deficit. Should the government raise taxes to balance the budget?

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Assume the government is running a budget deficit. Should the government raise taxes to balance the budget? Should the government decrease spending to balance the budget? What are the pros and cons of each action?

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Macroeconomics

ISBN: 978-1319120054

3rd Canadian edition

Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson

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Question Posted: Dec 22, 2017 07:23 AM

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Assume the government is running a budget deficit. Should the government raise taxes to balance the budget?

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It has been found that when government is running a budget deficit it does has the option ...View the full answer

Macroeconomics

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