Joe figures that if the spending multiplier is 5 and the economy needs a $10 billion increase in aggregate expenditures to reach full employment, the proper tax policy is to cut taxes by $2 billion. Critique Joe's logic. How much of a tax cut is required?

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The Answer of Joe figures that if the spending multiplier is 5 and the economy needs a $10 billion increase in aggregate expenditures to reach full employment, the proper tax policy is to cut taxes by $2 billion. Critique Joe's logic. How much of a tax cut is required?

Joe Figures That If the Spending Multiplier Is 5 and the Economy