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How fiscal policy can increase aggregate supply

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1. In terms of fiscal policy choices, which position is best - Gov't hands off or Gov't hands on?

2. How fiscal policy can increase aggregate supply?

3. Why do most economists believe that cutting taxes (supply-side incentive) will not increase tax revenues?

4. How saving can help economic growth?

5. How saving can hurt economic growth?

6. Which effect is more important? Choose between the effects from question 4 or question 5 above.

7. How automatic stabilizers work by including the terms "surplus" and "deficit" in your explanation?

8. What do economists mean when they say, "balance the budget over the business cycle"?

Reference no: EM131901472

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