(a) Assuming an economy is experiencing inflation, what are discretionary fiscal policy options that can be utilized by the government to address the situation? (b) Assuming an economy is in a recession, what are discretionary fiscal policy options that can be utilized by the government to move the economy out of the recession? (c) What is the difference between discretionary fiscal policy options and automatic stabilizers and explain how automatic stabilizers can be applied in an inflationary economy and a recessionary economy.
(a) Assuming an economy is experiencing inflation, what are discretionary fiscal policy options that can be utilized by the government to address the situation? (b) Assuming an economy is in a recession, what are discretionary fiscal policy options that can be utilized by the government to move the economy out of the recession? (c) What is the difference between discretionary fiscal policy options and automatic stabilizers and explain how automatic stabilizers can be applied in an inflationary economy and a recessionary economy.
Chapter18: Debates In Macroeconomics Over The Rolse And Effects Of Government
Section: Chapter Questions
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(a) Assuming an economy is experiencing inflation, what are discretionary fiscal policy options that can be utilized by the government to address the situation? (b) Assuming an economy is in a recession, what are discretionary fiscal policy options that can be utilized by the government to move the economy out of the recession? (c) What is the difference between discretionary fiscal policy options and automatic stabilizers and explain how automatic stabilizers can be applied in an inflationary economy and a recessionary economy.
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VIEWStep 2: Explain the discretionary fiscal policy options that can be utilized to address inflation
VIEWStep 3: Explain the discretionary fiscal policy options that can be utilized to address recession
VIEWStep 4: Examine the difference between discretionary fiscal policies and automatic stabilizers
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