1. What are problems that governments may encounter in enacting and applying fiscal policy? You can read about the recent trends of US fiscal policy in historical context here: Federal Reserve Bank of Cleveland. (2015, Jul 14). US fiscal Policy: Recent trends in historical context. Retrieved from- https://www.clevelandfed.org/newsroom-and-events/publications/economic-trends/2015-economic-trends/et-20150714-us-fiscal-policy-recent-trends-in-historical-context.aspx

1. What are problems that governments may encounter in enacting and applying fiscal policy? You can read about the recent trends of US fiscal policy in historical context here: Federal Reserve Bank of Cleveland. (2015, Jul 14). US fiscal Policy: Recent trends in historical context. Retrieved from- https://www.clevelandfed.org/newsroom-and-events/publications/economic-trends/2015-economic-trends/et-20150714-us-fiscal-policy-recent-trends-in-historical-context.aspx

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter17: Federal Deficits, Surpluses, And The National Debt

Section17.1: The Federal Budget Balancing Act

Problem 1YTE

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Similar questions

Specify whether expansionary or contractionary fiscal policy would seem to be most appropriate in response to each of the situations below and sketch a diagram using aggregate demand and aggregate supply curves to illustrate your answer: A recession. A stock market collapse that hurts consumer and business confidence. Extremely rapid growth of exports. Rising inflation. A rise in the natural rate of unemployment. A rise in oil prices.
What is the main reason for employing contractionary fiscal policy in a time of strong economic growth?
What is the main reason for employing expansionary fiscal policy during a recession?
What are some practical weaknesses of discretionary fiscal policy?
What is the difference between discretionary fiscal policy and automatic stabilizers?
What is the main advantage of automatic stabilizers over discretionary fiscal policy?
Have the spending and taxes of the U.S. federal government generally had an upward or a downward trend in the last few decades?
What would happen if contractionary fiscal policy were implemented during an economic boom but, due to Lag, it did not take effect until the economy slipped into recession?
What would happen if expansionary fiscal policy was implemented in a recession but, due to lag, did not actually take effect until after the economy was back to potential GDP?
Why are expenditures such as crime prevention and education typically done at the state and local level rather than at the federal level?
How would a balanced budget amendment change the effect of automatic stabilizer programs?
What are some of the arguments for and against a requirement that the federal government budget be balanced every year?