The Romer and Romer 2010 paper in the American Economic Review found that tax changes that are made to promote long-run growth or to reduce an inherited budget deficit tend to result in
A)a strong positive relationship between taxes and output GDP.
B)a weak positive relationship between taxes and output GDP.
C)an uncertain correlation between taxes and output GDP.
D)a strong negative relationship between taxes and output GDP.

Question

Quizplus · Accepted Answer

The Romer and Romer 2010 paper found that tax changes aimed at promoting long-run growth or reducing budget deficits tend to have a strong negative impact on output GDP, as these changes often lead to reduced consumer spending and investment.

The Romer and Romer 2010 Paper in the American Economic