Question

Why does government spending theoretically give a bigger boost to the economy than tax cuts? Because government spending has a direct impact on the economy, whereas a tax cut may be saved instead of spent by consumers. Because tax cuts are used to slow down the economy. Because government spending is a larger portion of the GDP, than consumption. Because government spending never helps create jobs.

Name: why does government spending theoretically give a bigger boost to the economy than tax cuts because government spending has a direct impact on the economy whereas a tax cut may be saved inst 21779
Uploaded: 2021-06-25T19:13:52-08:00
Duration: 1 min 34 s
Channel: Kaylee Mcclellan
Description: why does government spending theoretically give a bigger boost to the economy than tax cuts because government spending has a direct impact on the economy whereas a tax cut may be saved inst 21779

          Why does government spending theoretically give a bigger boost to the economy than tax cuts?
Because government spending has a direct impact on the economy, whereas a tax cut may be saved instead of spent by consumers.
Because tax cuts are used to slow down the economy.
Because government spending is a larger portion of the GDP, than consumption.
Because government spending never helps create jobs.

why does government spending theoretically give a bigger boost to the economy than tax cuts because government spending has a direct impact on the economy whereas a tax cut may be saved inst 21779

Added by Alfredo R.

Principles of Economics

Gregory Mankiw 8th Edition

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Solved by Expert Kaylee Mcclellan

06/25/2021

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Why does government spending theoretically give a bigger boost to the economy than tax cuts? Because government spending has a direct impact on the economy, whereas a tax cut may be saved instead of spent by consumers. Because tax cuts are used to slow down the economy. Because government spending is a larger portion of the GDP, than consumption. Because government spending never helps create jobs.