One reason given for the Bush tax cuts in 2001 was to reduce the size of the
Question:
a. Why might the government want to reduce the size of the budget surplus?
b. Shortly after the tax cuts were passed, various changes occurred that policymakers could not have predicted, such as the terrorist attacks on September 11, 2001.What happened to the government’s budget surplus?
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a First a cyclically adjusted surplus is contractionary Secondly ta...View the full answer
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Related Book For 
Macroeconomics
ISBN: 9780132109994
1st Edition
Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty
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