Question

Give two examples of fiscal stimuli (4pts each=8 pts) and explain why/when a government would use these (4pts). Explain how corporate tax cuts could be an engine for economic growth (5 pts). According to the RWM article, explain 2 ways the GOP Tax plan could increase income inequality (4 pts each=8pts).[hints: using an example to explain the need for fiscal stimuli and what it is may be helpful in answering this question].

Answer 1

So(ution During a ckeon fan Govermnetr con cks tn aoith ael to intrcose eplo ment and aea demand in the h the coovs ecoreyele ohy does Endia need a fscal stimufur pictuve thr Endineconoy ar an aiplone cwih folt the airplane aflot alro, anecdofat npge to pauide for the eonory

has Swi↓(hed to tic acod, and revuitertax fhe tru the net bet to anncance acof alon "Tax- Theolh rendi simattafes ton shacton achuify and reuter Cinemployment roney Since tis tox ecanot he hor aracy aaiose

3 stimculus ac oue sfand stnre the ha spendin ouiy the mivak recor, and se tiris r opposed by Ihcn