8. Agreement and disagreement among economists Suppose that Kevin, an economist from a consulting firm, and Maria, another economist from a graduate program in the Northeast, are both guests a popular science podcast. The host of the podcast is facilitating their debate over budget deficits. The following dialogue represents a portion of the transcript of their discussion: Maria: Most people recognize that the budget deficit has been rising considerably over the last century. We need to find the best course of action to remedy this situation. Kevin: I believe that a cut in income tax rates would boost economic growth and raise tax revenue enough to reduce budget deficits. Maria: I actually feel that raising the top income tax rate would reduce the budget deficit more effectively. The disagreement between these economists is most likely due to Despite their differences, with which proposition are two economists chosen at random most likely to agree? Central banks should focus more on maintaining low unemployment than on maintaining low inflation. Employers should not be restricted from outsourcing work to foreign nations. Business managers can raise profit more easily by reducing costs than by raising revenue.

8. Agreement and disagreement among economists Suppose that Kevin, an economist from a consulting firm, and Maria, another economist from a graduate program in the Northeast, are both guests a popular science podcast. The host of the podcast is facilitating their debate over budget deficits. The following dialogue represents a portion of the transcript of their discussion: Maria: Most people recognize that the budget deficit has been rising considerably over the last century. We need to find the best course of action to remedy this situation. Kevin: I believe that a cut in income tax rates would boost economic growth and raise tax revenue enough to reduce budget deficits. Maria: I actually feel that raising the top income tax rate would reduce the budget deficit more effectively. The disagreement between these economists is most likely due to Despite their differences, with which proposition are two economists chosen at random most likely to agree? Central banks should focus more on maintaining low unemployment than on maintaining low inflation. Employers should not be restricted from outsourcing work to foreign nations. Business managers can raise profit more easily by reducing costs than by raising revenue.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter17: Federal Deficits, Surpluses, And The National Debt

Section: Chapter Questions

Problem 7SQP

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Similar questions

Based on the national saving and investment identity, what are the three ways the macroeconomy might react to greater government budget deficits?
Explain whether or not you agree with the premise of the Ricardian equivalence theory that rational people might reason: Well, a higher budget deficit (surplus) means that Im just going to owe more (less) taxes In the future to pay off all that government borrowing, so Ill start saving (spending) now. Why or why not?
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During the most recent recession, some economists argued that the change in the interest rates that comes about due to deficit spending implied in the demand and supply of financial capital graph would not occur. A simple reason was that the government was stepping in to invest when private firms were not. Using a graph, explain how the use by government in investment offsets the deficit demand.
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What is the difference between expansionary fiscal policy and contractionary fiscal policy?
Why is spending by the U.S. government on scientific research at NASA fiscal policy while spending by the University of Illinois is not fiscal policy? Why is a cut in the payroll tax fiscal policy whereas a cut in a state income tax is not fiscal policy?
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