Critical thinking question Does an active fiscal policy help or hinder long-run growth in the economy? The textbook presents arguments that can be used to support both sides. a. Explain two (2) reasons of why an active fiscal policy helps the long-run growth of the economy. b. Explain two (2) reasons of why an active fiscal policy hinders the long-run growth of the economy. c. How did the fiscal stimulus create more jobs in economy?

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter30: Government Budgets And Fiscal Policy
Section: Chapter Questions
Problem 38CTQ: Why is spending by the U.S. government on scientific research at NASA fiscal policy while spending...
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Critical thinking question
Does an active fiscal policy help or hinder long-run growth in the economy? The textbook presents
arguments that can be used to support both sides.
a. Explain two (2) reasons of why an active fiscal policy helps the long-run growth of the economy.
b. Explain two (2) reasons of why an active fiscal policy hinders the long-run growth of the
economy.
c. How did the fiscal stimulus create more jobs in economy?
Transcribed Image Text:Critical thinking question Does an active fiscal policy help or hinder long-run growth in the economy? The textbook presents arguments that can be used to support both sides. a. Explain two (2) reasons of why an active fiscal policy helps the long-run growth of the economy. b. Explain two (2) reasons of why an active fiscal policy hinders the long-run growth of the economy. c. How did the fiscal stimulus create more jobs in economy?
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