Most macroeconomists believe it is a good thing that taxes act as automatic stabilizers and lower the size of the multiplier. However, a smaller multiplier means that the change in government purchases of goods and services, government transfers, or taxes necessary to close an inflationary or recessionary gap is larger. How can you explain this apparent inconsistency?
Recently Asked Questions
- View the step-by-step solution to: guidelines for the slopes of some object. Examples include: wheelchair ramps, roofs, buildable land and embankments.
- Microbial antagonism plays a big role in maintaining a healthy and beneficial normal microbiota. What happens when the microbiota is damaged? What are some
- Which of the following items would require a lessor to classify a lease as an operating lease? A) The lease contains a bargain purchase option. B) Ownership