Discuss how could a tax cut achieve the same result


Problem

(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?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Discuss how could a tax cut achieve the same result
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