question archive Suppose a government seeks to cut taxes in response to a current recession, but due to delay in passing the necessary legislation through parliament the tax cut is not put into place for 18 months
Suppose a government seeks to cut taxes in response to a current recession, but due to delay in passing the necessary legislation through parliament the tax cut is not put into place for 18 months
Subject:EconomicsPrice: Bought3
Suppose a government seeks to cut taxes in response to a current recession, but due to delay in passing the necessary legislation through parliament the tax cut is not put into place for 18 months. Assuming the government's objective is to stabilise output and inflation, use AD-AS model to show how this policy action might be counter-productive.
