Monetary and fiscal policy-tax cuts and economic activity


Problem:

In 2003, the Internal Revenue Service began to mail out refund checks because of a change in the tax law. Economic forecasters predicted that consumption and GDP would increase because of higher refunds on income taxes.

Do you feel the tax cuts from the past few years have been successful in promoting economic growth or in preventing a deeper decline? Are there other changes to fiscal policy that you feel would have been more successful?

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Macroeconomics: Monetary and fiscal policy-tax cuts and economic activity
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