Westonci.ca is the ultimate Q&A platform, offering detailed and reliable answers from a knowledgeable community. Experience the convenience of finding accurate answers to your questions from knowledgeable professionals on our platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.
Sagot :
When the government cuts taxes to keep the economy's cyclically adjusted budget in balance when the economy is expanding. The government is engaging in "neutral fiscal policy".
What is neutral fiscal policy?
When a government choice to tax, spend, or borrow has, or is meant to have, no overall impact on the economy, the action is considered fiscally neutral. Changes in policy can be viewed as neutral in terms of either their macroeconomic, microeconomics, or both effects.
fiscal neutrality occurs when taxes and government spending have no net effect-
- on the overall budget,
- total demand,
- economic activity.
To know more about the difference between macroeconomics and microeconomics, here
https://brainly.com/question/26191496
#SPJ4
Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.
