The desired tax cut to close a GDP gap is given by:
A. AD shortfall MPS.
B. AD shortfall MPC.
C. Desired fiscal stimulus MPC.
D. Desired fiscal stimulus MPC.
Answer:C
The desired tax cut to close a GDP gap is given by:
A. AD shortfall MPS. B. AD shortfall MPC. C. Desired fiscal stimulus MPC. D. Desired fiscal stimulus MPC.