Compare and contrast the use of government spending changes versus tax changes as a means of influencing the course of the economy. Is one or the other preferable in specific situations? A class is debating on two opposing viewpoints: 1- The best way to manage the economy is through tax changes. 2- Its' better to adjust the economy through government spending. What would a Neoclassical economist say? What would a Keynesian economist say? Which viewpoint do you agree with, and why?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Compare and contrast the use of government spending changes
versus tax changes as a means of influencing the course of the
economy. Is one or the other preferable in specific situations?
A class is debating on two opposing viewpoints:
1- The best way to manage the economy is through tax
changes.
2- Its' better to adjust the economy through government
spending.
What would a Neoclassical economist say? What would a
Keynesian economist say? Which viewpoint do you agree
with, and why?
PART II:
In this course we discussed several real complications that make
monetary and fiscal policy more challenging than simple theory
would suggest.
Given Lebanon economic state and the causes of that state.
What should be the appropriate mix of fiscal and monetary
policy?
Transcribed Image Text:Compare and contrast the use of government spending changes versus tax changes as a means of influencing the course of the economy. Is one or the other preferable in specific situations? A class is debating on two opposing viewpoints: 1- The best way to manage the economy is through tax changes. 2- Its' better to adjust the economy through government spending. What would a Neoclassical economist say? What would a Keynesian economist say? Which viewpoint do you agree with, and why? PART II: In this course we discussed several real complications that make monetary and fiscal policy more challenging than simple theory would suggest. Given Lebanon economic state and the causes of that state. What should be the appropriate mix of fiscal and monetary policy?
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