In November 2011, the government of France announced that it was reducing its forecast for economic growth

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In November 2011, the government of France announced that it was reducing its forecast for economic growth in 2012. It was also reducing its estimates of tax revenue for 2012, since a weaker economy would mean smaller tax receipts.

To offset the effect of lower revenue on the budget deficit, the government also announced a new package of tax increases and spending cuts. Which side of the stimulus–austerity debate was France taking?

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Macroeconomics

ISBN: 9781464110375

4th Edition

Authors: Paul Krugman, Robin Wells

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