"Obama Considers Delaying Tax Increase"
"U)S. President- elect Barack Obama is considering delaying his proposal to repeal the Bush tax cuts wealthiest Americans in light of the economic downturn."
HYPERLINK "http://www.nytimes.com/" www.nytimes.com, 11/23/20
Obama's possible decision to delay the tax increase recognizes the fact that a tax increase will disposable income and the recessionary gap.

Question

Quizplus · Accepted Answer

Delaying a tax increase would prevent a decrease in disposable income, which could otherwise exacerbate the recessionary gap by reducing consumer spending.