1. Recommend fiscal policy that is most likely to be invoked during a period of recession or high unemployment and during a period of rapid inflation 2. Identify problems or limitations from the implementation of fiscal policies and putting them into effect?

1. Recommend fiscal policy that is most likely to be invoked during a period of recession or high unemployment and during a period of rapid inflation 2. Identify problems or limitations from the implementation of fiscal policies and putting them into effect?

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 1.7P

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Concept explainers

Fiscal Policy and Money Market

Fiscal policy is one of the important tools that is used by the government to control inflation or aggregate demand in the economy. Under this policy, there are two rules which are used by the government, one is the expenditure of the government and the other is the taxation or income of the government which it collects from the public.

Question

1. Recommend fiscal policy that is most likely to be invoked during a period of recession or high unemployment and during a period of rapid inflation

2. Identify problems or limitations from the implementation of fiscal policies and putting them into effect?

# please answer sub questions.

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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