Not all economists agree on what constitutes the optimal size and scope of government. Therefore, they won’t all agree as to the preferred fiscal policy measure to stimulate the economy: increased government purchases or tax cuts. Do you agree or disagree that some economists would prefer to increase government purchases to stimulate the economy while others would prefer to cut taxes? Explain your answer.
Economics (MindTap Course List)
Economics (MindTap Course List)
Solutions
Not all economists agree on what constitutes the optimal size and scope of government. Therefore, they won’t all agree as to the preferred fiscal policy measure to stimulate the economy: increased government purchases or tax cuts. Do you agree or disagree that some economists would prefer to increase government purchases to stimulate the economy while others would prefer to cut taxes? Explain your answer.
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