Recent content by Sarah Hazell

With taxes held constant, an increase in government purchases can increase aggregate expenditure and aggregate demand. How would 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?

With taxes held constant, an increase in government purchases can increase aggregate expenditure and aggregate demand. How would 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?

With taxes held constant, an increase in government purchases can increase aggregate expenditure and aggregate demand. How would 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?