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Sometimes new classical macroeconomists will argue against certain types of fiscal policy. While the Bush Tax Cuts were long term and continue to impact us
Sometimes new classical macroeconomists will argue against certain types of fiscal policy. While the Bush Tax Cuts were long term and continue to impact us today, a one-time short term tax cut that could be proposed faces a problem that is a combination of the Paradox of Thrift and Ricardian Equivalence. Explain both of these ideas and why an economist might believe that a one-time tax cut will not have the intended impact on the economy
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