Suppose that in a period of sluggish growth there is a


Suppose that in a period of sluggish growth, there is a debate on whether to stimulate the economy by means of a tax cut or an increase in government spending. In the short run, a tax cut, as contrasted with an increase in government spending, is

a) equally powerful on a per dollar basis, favoring private over public spending

b) not quite as powerful on a per dollar basis, favoring private over public spending

c) equally powerful on a per dollar basis, and neutral between private and public spending

d) not quite as powerful on a per dollar basis, and neutral between private and public spending

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Macroeconomics: Suppose that in a period of sluggish growth there is a
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