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You are an economic advisor to the President and the NBER has recently announced that we are in a recession. As a good Keynesian, you
You are an economic advisor to the President and the NBER has recently announced that we are in a recession. As a good Keynesian, you tell the president to enact stabilization policies. After all, you believe that in the long run we're all dead.
Would you recommend utilizing a tax cut or an increase in government spending? If both were the same size, which would have a greater impact? (utilize arguments with the Keynesian multiplier and MPC)
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