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size of government in relation to economic growth
Essay specific features
Written by:
Kevin L
Date added:
January 20, 2016
Level:
University
Grade:
A
No of pages / words:
5 / 1302
Was viewed:
5432 times
Rating of current essay:
Essay content:
Cuts in public spending, on the other hand, can lead to more private investment, and faster growth.
Changes in public spending and taxation affect corporate profits, and thus private investment.. Changes in public spending have a bigger impact than tax changes do. Particularly important are changes in the public wage bill and in government transfers...
displayed 300 characters
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Changes in public spending have a bigger impact than tax changes do. Particularly important are changes in the public wage bill and in government transfers. This is because the labor market is the main channel linking these effects of fiscal policy on growth. Higher wages cut into profits, reducing investment, and as a result, economic growth...
displayed 300 characters
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