This paper circulates around the core theme of Which of the following fiscal policy changes together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Which of the following fiscal policy changes would have a larger overall negative impact on AD and RGDP? Explain your answer in a paragraph or two with credible logics and analysis. Hint: Read my lecture notes on multiplier effects and also Ch. 9 in the textbook of Baumol and Blinder. 4 ptsA) A program of tax hike, distributed uniformly across the households earning over $300K annually filing tax returns, amounting to $85 billion in total tax hikes. Alternatively, B) An $85 billion sequester (called automatic federal government spending cut) that went into effect on March 1, 2013. This was an across-the-board spending cut in federal governmentâs various existing programs and services, including maintenance of major infrastructures and aviation traffic control systems
