Business, 08.04.2021 18:40 TakeNotes

Most macroeconomists believe that it is a good thing that taxes act as automatic stabilizers and lower the size of the multiplier. However, a smaller multiplier means that changes in government purchases of goods and services, government transfers, or taxes necessary to close inflationary or recessionary gaps are larger. How can you explain this apparent inconsistency

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Most macroeconomists believe that it is a good thing that taxes act as automatic stabilizers and low...

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