Question
The government is looking to stimulate the economy. They are considering three different policies: i) a retroactive tax cut. ii) a decrease to the tax
The government is looking to stimulate the economy. They are considering three different policies:
i) a retroactive tax cut.
ii) a decrease to the tax rate
iii) an increase in government spending.
Discuss the effects of these policies, as well as their advantages and disadvantages. 2 marks for each policy.
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Principles of Economics
Authors: N. Gregory Mankiw
8th edition
1305585127, 978-1305971493, 978-1337516860, 1337516864, 978-0357539200, 978-1305585126
