Why might government expenditures be more appropriate than tax cuts to counter recessions? Is there any evidence for this thinking?
According to the traditional Keynesian model government expenditures have a larger impact on aggregate demand than tax cuts. Since tax cuts will be partly saved, the impact of a tax cut on aggregate demand is less than the impact of an increase in government expenditures. There is some evidence from computer simulations that government expenditures have a larger multiplier effect than tax cuts.
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Over the period 1960-2010, the United States economy grew at roughly
A) 2.1 percent. B) 3 percent. C) 4 percent. D) one percent. E) 3.5 percent.
According to the Solow model, which type of government spending is more likely to raise the long-term growth rate of output per person, spending on infrastructure or spending on research and development?
What will be an ideal response?
Robert lost his job during the last recession and his yearly income fell by 15 percent. As a result of the action of automatic stabilizers, his disposable income would likely have fallen by less than 15 percent
a. True b. False Indicate whether the statement is true or false
Finding a way to create and capture value is part of
A. business strategy. B. organizational structure. C. management control, but not general management. D. cost control systems.