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Fiscal Policy - the Tax Multiplier
13:36
YouTubeJason Welker
Fiscal Policy - the Tax Multiplier
This lesson illustrates how a tax cut of a particular amount will ultimately affect aggregate demand in the economy and therefore total output. Tax cuts are an indirect injection into the macro-economy, meaning that they put money into the pockets of households, but who then get to decide how much of it to spend on goods and services. For this ...
69.2K viewsNov 30, 2011
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