Examine the tools of fiscal policy explain how they are used

Reference no: EM1325710

Understanding the tools of fiscal policy.

Assume that the economy is already in a recession, and both the President and Congress have decided to do something to restore the economy. Both agree that lowering taxes would not be a good idea, but do believe that it is in the best interest of the economy to increase government spending in defense, education & infrastructure.

The President and Congress change the budget accordingly, but after 18 months, GDP only increased by three quarters of the expected amount. What factors might be responsible for this situation?

State the tools of fiscal policy and how they are used to reduce inflation or eliminate a recession.

Reference no: EM1325710

Questions Cloud

Fiscal policy also which factors limit its effect : Elucidate the fiscal policy also which factors limit its effect.

Explain communication consultants : Explain Communication Consultants and Explain how new communication systems will help improve efficiency in virtual teams

What is organizational psychology : Describe organizational psychology? How is it distinct from general psychology?

Thoughts about ethics and fairness in managerial decision : Describe your thoughts and feelings about ethics and fairness in managerial decision-making.

Examine the tools of fiscal policy explain how they are used : Examine the tools of fiscal policy also explain how they are used to reduce inflation or eliminate a recession.

Explain henry assael model of buying decision behaviour : Explain Henry Assael Model of buying decision behaviour along with the diagram". Explain in 2 Pages total.

Suggestions for ensuring an adequate change control : What are two suggestions for ensuring the adequate change control on projects that involve outside contracts.

Cross-culture gender perspective : What can you say about the roles and relative power of men and women in families and households?

Explaining the patient protection and affordable care act : How do you think the court will hold on these issues, and why do you think the court will hold this way?

User Account

All Pages