2. The economy is in a recession. A congresswoman suggests increasing spending to stimulate aggregate demand and raising taxes simultaneously to pay for the increased spending. Her sug- gestion to combine higher government expenditures with higher taxes is: LO13.1 a. the worst possible combination of tax and expenditure changes. b. the best possible combination of tax and expenditure changes. c. a mediocre and contradictory combination of tax and expen- diture changes.
2. The economy is in a recession. A congresswoman suggests increasing spending to stimulate aggregate demand and raising taxes simultaneously to pay for the increased spending. Her sug- gestion to combine higher government expenditures with higher taxes is: LO13.1 a. the worst possible combination of tax and expenditure changes. b. the best possible combination of tax and expenditure changes. c. a mediocre and contradictory combination of tax and expen- diture changes.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:2. The economy is in a recession. A congresswoman suggests
increasing spending to stimulate aggregate demand and raising
taxes simultaneously to pay for the increased spending. Her sug-
gestion to combine higher government expenditures with higher
taxes is: LO13.1
a. the worst possible combination of tax and expenditure changes.
b. the best possible combination of tax and expenditure changes.
c. a mediocre and contradictory combination of tax and expen-
diture changes.
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