Author Question: A decrease in taxes will have no effect on real GDP if A) the tax decrease is offset by an ... (Read 15 times)

crazycityslicker · **on:** Jun 30, 2018

A decrease in taxes will have no effect on real GDP if

A) the tax decrease is offset by an increase in government spending.
B) people look at changes in taxes only in the present.
C) the Ricardian equivalence theorem holds.
D) there is no crowding out.

Question 2

When government spending is equal to the tax revenues during a specific time period, this is known as a

A) government budget deficit. B) government budget surplus.
C) balanced budget. D) public debt.