Most macroeconomists believe it is a good thing that


Most macroeconomists believe it is a good thing that taxesact as automatic stabilizers and lower the size of themultiplier. However, a smaller multiplier means that the change ingovernment 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 in consistency?

Request for Solution File

Ask an Expert for Answer!!
Macroeconomics: Most macroeconomists believe it is a good thing that
Reference No:- TGS0582134

Expected delivery within 24 Hours