Economist A believes that the government spending multiplier is equal to the tax multiplier,and thus would likely ________________ to close a recessionary gap.

Question

Quizplus · Accepted Answer

Economist A believes that the government spending multiplier is equal to the tax multiplier, which means that both policies will have the same impact on closing a recessionary gap. Therefore, Economist A would be indifferent between an increase in government spending and a decrease in taxes, as both would achieve the same result.

Economist a Believes That the Government Spending Multiplier Is Equal