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In Recent Years,many Economists Believe That Changes in Taxes Rather

Question 41

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In recent years,many economists believe that changes in taxes rather than changes in government expenditures should be the primary fiscal weapon to fight unemployment or inflation because


A) it is easier to get Congress to take speedy action on tax changes than on spending changes.
B) changes in government spending shift the aggregate supply curve rather than the aggregate demand curve.
C) taxes directly affect the income of the government, making it easier to balance the budget every year.
D) taxes change disposable income while having no impact on GDP.
E) it is better to base the level of government spending on its long-run merits than short-term stabilization considerations.

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