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PSLecture19 - Problem Set for Lecture 19 Macro 3 The...

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Problem Set for Lecture 19: Macro 3: The National Debt and Other Macro Issues [March 9, 2010] Note: Those problems identified with an T* are considered for review in the tutorials. T19.1 “Bartholomew is concerned about the standard of living for future generations. Bartholomew talks to his Member of Parliament who has similar concerns. Bartholomew takes the position that there should not be a tax cut in Canada [under any circumstances] until the National Debt has been greatly reduced.” T19.2 “Barbara reviews the recession during the early part of the 1990's in Canada: a time in which Canada had a high federal deficit and a high level of unemployment with price stability. Barbara wonders why the Canadian Government did not undertake a large tax decrease [DFP] in the early 1990's with a view to both eliminating the recession and putting more Canadians to work.” *T19.3 “Boyne likes Mr. Martin’s dedication to reduce the Canadian national debt. Boyne takes the position that this should be the number one economic goal for the Canadian government.
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