Question
If the government increases its expenditure by $100, it has to increase taxes by $100. Explain whether you agree or disagree with the above statement.
If the government increases its expenditure by $100, it has to increase taxes by $100. Explain whether you agree or disagree with the above statement. In your answer, carefully discuss the effects of a change in government expenditure and a change in taxes on the planned aggregate expenditure.
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Principles of Microeconomics
Authors: N. Gregory Mankiw
8th edition
1305971493, 978-1305971493
