As the economy begins to worsen ClaudiaSahm (formerly director of macroeconomicpolicy at the Washington Center for EquitableGrowth) proposes a new policy that providesAmerican's with an automatic lump-sumstimulus payment when the three-monthaverage national unemployment rate rises byat least .5 % compared to its low in the lastyear.What kind of policy is this? Discuss the effectsof this policy proposal if it was in place as thechanges in (a) took place.

Fiscal policy is when the government manipulates the spending and the taxes to manage the economy,…

Answered: What kind of policy is this? Discuss…

What kind of policy is this? Discuss the effects of this policy proposal if it was in place as the changes in (a) took place.

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter11: Fiscal Policy: The Keynesian View And Historical Development Of Macroeconomics

Section: Chapter Questions

Problem 6CQ

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