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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.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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.
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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