Macroeconomics
4th Edition
ISBN: 9780393602487
Author: Jones, Charles I.
Publisher: W. W. Norton & Company
expand_more
expand_more
format_list_bulleted
Question
Chapter 14, Problem 7RQ
To determine
Justification for the fiscal stimulus during the financial crisis.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
During difficult economic times, why are uniform across-the-board budget cuts poor fiscal policy?
Why does a balanced budget increase in spending and taxes increase aggregate demand?
What type of fiscal policy would be appropriate to use during a recessionary period? How might this affect aggregate demand, unemployment, and inflation?
Knowledge Booster
Similar questions
- If 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_forwardHow and why would the line-item veto influence budget reforms and reduce deficits?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
- How can a government that isn't running a deficit still get itself into financial trouble?arrow_forwardFrom a political economy perspective, why does fiscal policy have a built-in expansionary bias?arrow_forwardWhy is identifying potential opportunities, and managing within predictable limits for fiscal policy important in budgeting?arrow_forward
- List what specific, deliberate actions the federal government could take to enact expansionary fiscal policy.arrow_forwardIf government policy makers were worried about the inflationary potential of the economy, which of the following would be a correct fiscal policy change?arrow_forwardwhat type(s) of stimulus policy can account for an increase in interest rates and an increase in output?Explain and include a well-labeled figure.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning