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Policy options to stabilize the economy

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There are several fiscal policy options to stabilize the economy: Changes in Government Purchases, Business Taxes, Income Taxes, and Transfer Payments. Based on these topics, determine if the United States of America currently need economic stimulus or contraction. Describe how each policy option could specifically be used to change the national economy. ***Example: Country Z needs economic stimulus. The government could lower the business tax on buying new equipment. This would stimulate the economy because firms would have more money to invest which, in turn, increases demand in the equipment supply sector.*** Please answer in two pages containing references.

Reference no: EM131681679

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