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When the us government proposed a fiscal stimulus package during a recession there is usually a debate in Congress as to whether the government should:
When the us government proposed a fiscal stimulus package during a recession there is usually a debate in Congress as to whether the government should:
1. Increaas spending directly such as building bridges and schools or
2.reduce personal income taxes
using the concept of u.s gdp accounting based on the expenditure approach:
a. Explain why each of the 2 optima would have a different initial impact on U.S GDP
b. How could the positive expenditure impact on U.S GDP from the actual spending stimulated by the fiscal package be diminished?
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