Long-term federal government budget problems

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Reference no: EM1321 , Length: Word count: 394

Question:. Explain why there are long-term Federal government budget problems.   Explain why the base-line forecast of the CBO is misleading. Include in your answer why solutions to the problem will necessarily involve a decision about which citizens will bear the burden of trying to balance the budget and how various general approaches can influence where the burden is likely to fall. 

Reference no: EM1321

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Macroeconomics Questions & Answers

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Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

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In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

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