2. The economy is in a recession. A congresswoman suggests increasing spending to stimulate aggregate demand and raising taxes simultaneously to pay for the increased spending. Her sug- gestion to combine higher government expenditures with higher taxes is: LO13.1 a. the worst possible combination of tax and expenditure changes. b. the best possible combination of tax and expenditure changes. c. a mediocre and contradictory combination of tax and expen- diture changes.
2. The economy is in a recession. A congresswoman suggests increasing spending to stimulate aggregate demand and raising taxes simultaneously to pay for the increased spending. Her sug- gestion to combine higher government expenditures with higher taxes is: LO13.1 a. the worst possible combination of tax and expenditure changes. b. the best possible combination of tax and expenditure changes. c. a mediocre and contradictory combination of tax and expen- diture changes.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter18: Six Debates Over Macroeconomic Policy
Section: Chapter Questions
Problem 6PA
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