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 increases intended to promote long-run growth or reduce budget deficits tend to have a strong negative impact on output GDP.

The Romer and Romer 2010 Paper in the American Economic