Kudlow to Unveil ‘Tax Cuts 2.0’ in 2020

February 4, 2020

Kudlow says ‘tax cuts 2.0’ will be unveiled later this year

Questions

1. Who is Larry Kudlow?
2. If the United States is at full employment, is the government budget deficit cyclical or structural? Explain.
3. Everything else remaining the same, how will further tax cuts change the government budget deficit?
4. What is the effect of a tax cut on the price level and real GDP in the short run and in the long run if the economy is at full employment?
5. Draw a diagram to illustrate your answer to #4.