or disagree and explain your answer . During periods of budget surplus (when G< T), the govern- ment debt grows. b. A tax cut will increase the equilibrium level of GDP if the budget is in deficit but will decrease the equilibrium level of GDP if the budget is in surplus. a. If the MPS 90, the tax multiplier is actually larger than the eynenditure multiolier
or disagree and explain your answer . During periods of budget surplus (when G< T), the govern- ment debt grows. b. A tax cut will increase the equilibrium level of GDP if the budget is in deficit but will decrease the equilibrium level of GDP if the budget is in surplus. a. If the MPS 90, the tax multiplier is actually larger than the eynenditure multiolier
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter18: Debates In Macroeconomics Over The Role And Effects Of Government
Section: Chapter Questions
Problem 1WNG
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