Economics: Principles and Policy (MindTap Course List)
Economics: Principles and Policy (MindTap Course List)
13th Edition
ISBN: 9781305280595
Author: William J. Baumol, Alan S. Blinder
Publisher: Cengage Learning
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Chapter 25, Problem 6DQ
To determine

The impact of permanent tax cut and temporary tax cut.

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Will a discretionary fiscal policy action that involves spending $100 billion have the same overall effect on the economy in the short run as a $100 billion tax cut?
Should the government fight recessions with spending hikes rather than tax cuts ? Explain.
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