What are the effects of fiscal policy during normal times? What are the effects of fiscal policy during abnormal times?
What will be an ideal response?
During normal times, discretionary fiscal policy may not have its intended effects and, therefore, may actually cause more harm than good. The various time lags and the possible offsets make it fairly ineffective as a tool. During a major recession, fiscal policy is more likely to be effective, since the offsets are less likely.
You might also like to view...
Using the data in the table above, if the price of a stapler is $5, then there is ________ of staplers and the quantity of staplers demanded ________ the quantity of staplers supplied
A) a surplus; is greater than B) a surplus; is less than C) a shortage; is greater than D) a shortage; is less than E) neither a surplus nor a shortage; equals
Total profit is maximized when marginal profit maximized.
Answer the following statement true (T) or false (F)
Discuss some of the government regulations designed to ensure depositors' safety and to control the money supply
YearCPI2010952011100201210520131042014106According to the table shown, what can be said about the cost of living in 2012?
A. Every consumer will experience a 5 % increase in his cost of living from 2011. B. The typical consumer must spend 5 % more in 2012 than he did in 2011 in order to buy the same goods. C. Whatever consumers bought in 2012 cost 5% more than what they spent in 2011. D. None of these statements is true.