EBK ECONOMICS TODAY
18th Edition
ISBN: 9780100663336
Author: Miller
Publisher: YUZU
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Question
Chapter 14, Problem aFCT
To determine
To write:
The reasons for which GAO suggests clubbing overlapping accounting offices to reduce budget deficit of federal government.
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- How and why would the line-item veto influence budget reforms and reduce deficits?arrow_forwardIncreasing taxes to reduce national debt is more damaging to the economy than spending reforms because Tax hikes are much easier to implement and more successful at reducing debt in the long-run but lead to crowding-in, lower debt to GDP ratio, less small business formation hurting economic growth and reducing tax revenue through the Laffer curve effect. Tax hikes harm economic recovery slowing growth, reducing GDP by more than the tax revenue gained, while increasing unemployment and the need for more government spending, and thus are self-defeating. Tax hikes shift aggregate demand and aggregate supply left, but spending reforms do not. 4. All of the answers are correct.arrow_forwardDo you think the typical time lag for fiscal policy is likely to be longer or shorter than the time lag for monetary policy? Explain your answer?arrow_forward
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