How could a tax cut achieve the same result

Reference no: EM131227904

(Fiscal Policy)This chapter shows that increased government purchases, with taxes held constant, can eliminate a contractionary gap. How could a tax cut achieve the same result? Would the tax cut have to be larger than the increase in government purchases? Why or why not?

Reference no: EM131227904

Questions Cloud

What do you think they would have to say about the pros : Class - if you were to interview or get more information from countries that have universal healthcare, what do you think they would have to say about the pros and cons?

Product or a service from an industry : Discuss how the five Operational Performance Objectives may influence decision-making associated with process design and layouts - Discuss how the five Operational Performance Objectives may influence decision-making associated with process design ..

Illustrate an economy with an expansionary gap : Illustrate this on an AD-AS diagram, assuming that the government changes its purchases by exactly the amount necessary to close the gap.

Describe how the competitive compensation and benefits : Determine if the employee will be exempt or nonexempt and discuss how overtime will be handled. Suggest other benefits that might be considered within the next few months to enhance employee performance and provide job motivation.

How could a tax cut achieve the same result : (Fiscal Policy)This chapter shows that increased government purchases, with taxes held constant, can eliminate a contractionary gap. How could a tax cut achieve the same result? Would the tax cut have to be larger than the increase in government p..

Who do you think should rule in a truly just society : Who do you think should rule in a truly just society? Depending on your viewpoint, demonstrate which aspects of our current American society make it a just (or unjust) society?

Professional issues in computing case : 3410ICT & 7101ICT Professional Issues in Computing Case Studies. A software development company has just produced a suite that incorporates the new tax laws and calculates tax for both individuals and small businesses. The president of the company ..

How they might be used in determining fiscal policy : Visit these Web sites to get a sense of the kinds of analysis these groups do and how they might be used in determining fiscal policy.

What principles of justice would you propose to your peers : If you and several hundred other people were about to form a new society (let's say, as you plunged into space to populate a newly discovered planet), what principles of justice would you propose to your peers?

User Account

All Pages