Business, 25.07.2019 17:00 tystar84

Suppose a hypothetical economy is currently in a recessionary gap of $64 billion. four economists agree that expansionary fiscal policy can increase total spending and move the economy out of recession, but they are debating which type of expansionary policy should be used. economist a believes that the government spending multiplier is 8 and the tax multiplier is 4. economist b believes that the government spending multiplier is 4 and the tax multiplier is 2.

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Suppose a hypothetical economy is currently in a recessionary gap of $64 billion. four economists ag...