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1. Explain why G has the same multiplier as I, but taxes have a different multiplier. 2. If the government decides that aggregate demand is excessive and is causing inflation, what options are open to...

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1. Explain why G has the same multiplier as I, but taxes have a different multiplier.

2. If the government decides that aggregate demand is excessive and is causing inflation, what options are open to it? What if the government decides that aggregate demand is too weak instead?

3. Which of the proposed supply-side tax cuts appeals to you most? Draw up a list of arguments for and against enacting such a cut right now.

 

Answered Same Day Dec 25, 2021

Solution

Robert answered on Dec 25 2021
108 Votes
1. Explain why G has the same multiplier as I, but taxes have a different multiplier.
2. If the government decides that aggregate demand is excessive and is causing inflation, what
options are open to it? What if the government decides that aggregate demand is too weak instead?
3. Which of the...
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