Macroeconomic Policy, Midterm 2 (Nov 18) – Revisiting the Tax Cut & Jobs Act

How would you answer Question 2? [20 minutes] Consider expansionary fiscal policy in 2017-2018, in the form of the Tax Cuts and Jobs Act. The tax cut increased the federal debt by about $1.5 trillion over ten years. Chart 1. Chart 2. 2.1 Do you expect the fiscal multipliers to have been relatively large or … Continue reading Macroeconomic Policy, Midterm 2 (Nov 18) – Revisiting the Tax Cut & Jobs Act