Answered: If the government cut expenditures…

If the government cut expenditures during an expansion O A. it would have to raise the tax rate B. it would tend to stabilize the economy OC. both a and b D. neither a nor b

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section11.A: Graphical Treatment Of Taxes And Fiscal Policy

Problem 2TY

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If the government cut expenditures during an expansion
O A. it would have to raise the tax rate
B. it would tend to stabilize the economy
C. both a and b
D. neither a nor b

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