Compare and contrast the use of government spending changes versus tax changes as a means of influencing the course of the economy. Is one or the other preferable in specific situations? A class is debating on two opposing viewpoints: 1- The best way to manage the economy is through tax changes. 2- Its' better to adjust the economy through government spending. What would a Neoclassical economist say? What would a Keynesian economist say? Which viewpoint do you agree with, and why?

Compare and contrast the use of government spending changes versus tax changes as a means of influencing the course of the economy. Is one or the other preferable in specific situations? A class is debating on two opposing viewpoints: 1- The best way to manage the economy is through tax changes. 2- Its' better to adjust the economy through government spending. What would a Neoclassical economist say? What would a Keynesian economist say? Which viewpoint do you agree with, and why?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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We are passing an uncertain time that can be very difficult for us to grasp. Many are assuming that this pandemic of COVID-19 might be here for a long time, couple of years at least. Businesses are facing an unprecedented challenge to survive. The impact of this pandemic will affect different industries differently and hence, they need to adapt accordingly. The post pandemic world can be very different from the one that we know. Consumers will adapt a different lifestyle and a conservative economic approach. The overall economic situation might continue to decline for a long time before it starts to pick up again. Even global leaders are not thinking any differently for businesses in 2020. “For people in business, 2020 is really just a year for staying alive. Don’t even talk about your dreams or plans. Just make sure you stay alive. If you can stay alive, then you would have made a profit already” – Jack Ma Even though restaurants are open aimed the persisting situation,…