PRICIPLES OF MACROECONOMICS
PRICIPLES OF MACROECONOMICS
8th Edition
ISBN: 9781337761598
Author: Mankiw
Publisher: CENGAGE L
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Chapter 1, Problem 7PA
To determine

The given situation explains equity or efficiency.

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Macroeconomic policies have different effects on the price level and output (national income). Discuss the impact of a monetary policy that seeks to encourage economic growth.
Can you please help with this one. Some economists argue that taxing consumption is more efficient than taxing income. Following the same argument, the minister of finance of a country introduced a new tax for sugar based products “sugar tax” to promote healthy eating in the economy. Please use relevant diagrams to explain the impact of the tax on consumers, producers and the tax revenue when sugar is elastic and inelastic.
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