Question
https://www.richmondfed.org/~/media/richmondfedorg/publications/research/economic_brief/2009/pdf/eb_09-04.pdf a) What are the challenges with using tax cuts to expand the economy? Under what condition can a tax cut be fairly expansionary? Discuss.
https://www.richmondfed.org/~/media/richmondfedorg/publications/research/economic_brief/2009/pdf/eb_09-04.pdf
a) What are the challenges with using tax cuts to expand the economy? Under what condition can a tax cut be fairly expansionary? Discuss.
b) What are the challenges with using higher government spending to stimulate the economy? Discuss three (hint: starts on page 2!)
c) What is the conclusion reached in the article with respect to using fiscal vs. monetary policy to restore output in the economy?
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Managerial Economics
Authors: Paul Keat, Philip K Young, Steve Erfle
7th edition
0133020266, 978-0133020267
