Compare and contrast the use of government spending changes versus tax changes as a means of...

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Economics

Compare and contrast the use of government spending changesversus tax changes as a means of influencing the course of theeconomy. Is one or the other preferable in specific situations?Imagine for a moment that you have two roommates, who each haveopposing viewpoints on nearly everything, including politics andeconomics. Taylor is adamant that the best way to manage theeconomy is through tax changes, while Morgan insists that itâ€™sbetter to adjust the economy through government spending. Whatwould a Neoclassical economist say? What would a Keynesianeconomist say? Which roommate do you agree with, and why? Find anews article to help support your opinion. Summarize the articleand include the link to in your response.Â Â Remember tocite your sources.

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The battle between government spending and taxes as a step of affecting the course of any economy is very old and goes back to Keynesian and Neoclassical times This is normally called financial policy activities The government utilizes either or both methods to manage the economy As the federal government spending increases the demand and thus general GDP while the taxes decrease the households See Answer

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