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mrb0714 mrb0714
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Why are the currently proposed policies on infrastructure spending and tax cuts not likely to be effective in the short-run?
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Macroeconomics


Edition: 3rd
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stanka82stanka82
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The government expenditure multiplier is likely to be very small. Infrastructure investment would have very small impact on employment. The tax cuts are also likely to generate a small multiplier and the short-run effect would be to further increase the substantial budget deficit.

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