Economics: Private and Public Choice (MindTap Course List)
15th Edition
ISBN: 9781285453538
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Question
Chapter 11, Problem 7CQ
To determine
Reasons for the ups and downs of business cycle by changes in fiscal policy.
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Students have asked these similar questions
Was fiscal policy effective when the US economy was experiencing stagflation during the 1970s? Why or why not?
Why is getting the magnitude, or dollar size, of the policy change just right the most difficult thing to do when implementing discretionary fiscal policy?
Why do critics charge that fiscal policy has a “big-government bias”?
Chapter 11 Solutions
Economics: Private and Public Choice (MindTap Course List)
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- During the Great Recession of 20082009, what actions would have been required of Congress and the President had a balanced budget amendment to the Constitution been ratified? What impact would that have had on the unemployment rate?arrow_forwardhow does the fiscal policy work?arrow_forwardWhat are the implications of the current fiscal stimulus and low interest on the future of our country from an economic perspective?arrow_forward
- Why Krugman believe that fiscal austerity in france or more generally in Europe would fail?arrow_forwardIf stability of the economy is the primary objective of Fiscal Policy, then an Annually Balanced Budget (Government Expenditures = Tax Revenues) is the best policy approach. True or False?arrow_forwardIf the objective of fiscal policy is to stabilize (achieve full-employment (potential) GDP and maintain price level stability (control inflation)) the economy and promote economic growth, then would an annually balanced budget be effective? Why or why not?arrow_forward
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