After Reagan cut taxes 25% in 1981, a)Revenues dropped and Reagan had to increase taxes again in 1982 b)The Democrats responded by cutting military spending by 25%. c)The economy recovered and the tax cuts paid for themselves d)The Soviets published propaganda claiming to show that the cuts favored the rich dont use chatgpt answer i will 5 upvotes.

After Reagan cut taxes 25% in 1981, a)Revenues dropped and Reagan had to increase taxes again in 1982 b)The Democrats responded by cutting military spending by 25%. c)The economy recovered and the tax cuts paid for themselves d)The Soviets published propaganda claiming to show that the cuts favored the rich dont use chatgpt answer i will 5 upvotes.

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section2.3: Why Economists Disagree

Problem 3QQ

See similar textbooks

Similar questions

Please help me with b. Thank you!
In 2010 the government’s main medical adviser drew up plans for a minimum price for alcohol intended to double the cost of some drinks.Under the proposal no drinks could be sold for less than 50 pence per unit of alcohol theycontain. This would mean most bottles of wine could not be sold for under £4.50. Theproposal is aimed at reducing alcohol abuse. A spokesman for an opposition party saidthat it was more important to deal with peoples’ attitudes and not just the price of alcohol.The Portman Group, set up by drinks manufacturers to promote sensible drinking, arguesthat it would damage the majority of drinkers who behave responsibly in terms of theirconsumption.The NHS bill for alcohol abuse is an estimated £2.7bn a year. Recent figures showhospital admissions linked to alcohol use have more than doubled in England since 1995.Alcohol was the main or secondary cause of 207,800 NHS admissions in 2006/7,compared to 93,500 in 1995/96. The number of alcohol-related deaths in England…
The leader of a political party made the following campaign promise...
In an election year, two candidates for the prime minister position of Country S have set a debating session on the country’s long run economic future with each holds a different vision. Candidate A favours holding the line on taxes (fixed) and increasing government spending while Candidate B also favours holding the line on taxes, but wish to reduce government spending. The economy of Country S now is in recession due to the Covid-19 pandemic where unemployment rate is high, inflation level is low and economic growth is negative. Assume Candidate A wins the election and his programmes are enacted, the government of Country S would begin to run deficit budget. Explain the effects of Candidate A programmes on Country S’s unemployment rate, inflation level as well as economic growth.
Reagan campaigned for a phased 30 percent tax cut within the next three years in officeMost of the tax cuts focused on the lower -income and poverty levels . True or False?
TRUE/FALSE Barro is considered to be a supply side economist which is consistent with his idea that we should eliminate the corporate income tax.
In Germany in 2009 there was considerable debate about the extent to which thegovernment should be intervening in the economy. For example, its citizens were worriedabout the future of Opel, a German car brand that was part of the ailing General Motors.Some wanted the government to make sure jobs were saved no matter what. Others,however, were more hesitant and worried about becoming the government becoming toointerventionist. Traditionally since the Second World War the German government hasseen itself as a referee in market issues and has avoided trying to control parts of theeconomy. It would regulate anti-competitive behaviour, for example, but not try to runmany industries. However in the recession of 2009 when the economy was shrinking thegovernment was forced to spend more to stimulate demand and had to intervene heavilyto save the banking sector from collapse. The government also had to offer aid tobusinesses to keep them alive. 1. What are the possible benefits of a…
In Germany in 2009 there was considerable debate about the extent to which thegovernment should be intervening in the economy. For example, its citizens were worriedabout the future of Opel, a German car brand that was part of the ailing General Motors.Some wanted the government to make sure jobs were saved no matter what. Others,however, were more hesitant and worried about becoming the government becoming toointerventionist. Traditionally since the Second World War the German government hasseen itself as a referee in market issues and has avoided trying to control parts of theeconomy. It would regulate anti-competitive behaviour, for example, but not try to runmany industries. However in the recession of 2009 when the economy was shrinking thegovernment was forced to spend more to stimulate demand and had to intervene heavilyto save the banking sector from collapse. The government also had to offer aid tobusinesses to keep them alive. 1. What prompted greater intervention by the…
In 2010 the government’s main medical adviser drew up plans for a minimum price foralcohol intended to double the cost of some drinks.Under the proposal no drinks could be sold for less than 50 pence per unit of alcohol theycontain. This would mean most bottles of wine could not be sold for under £4.50. Theproposal is aimed at reducing alcohol abuse. A spokesman for an opposition party saidthat it was more important to deal with peoples’ attitudes and not just the price of alcohol.The Portman Group, set up by drinks manufacturers to promote sensible drinking, arguesthat it would damage the majority of drinkers who behave responsibly in terms of theirconsumption.The NHS bill for alcohol abuse is an estimated £2.7bn a year. Recent figures showhospital admissions linked to alcohol use have more than doubled in England since 1995.Alcohol was the main or secondary cause of 207,800 NHS admissions in 2006/7,compared to 93,500 in 1995/96. The number of alcohol-related deaths in England…
Does the Washington Monument strategy cut the items with the highest marginal utility or the lowest marginal utility?
Increase in government spending is one of the measure to correct deficient demand True/False
Fiscal stance refers to