What is the affect of balanced budget stimulus on consumer

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Reference no: EM133713127

Problem

Pretend the economy is in a recession. The government owes a lot of money and wants to make a budget that is fair, or G = T. What can the government do to boost GDP with fiscal stimulus while still keeping the budget balanced? Explain in words how the government can achieve such a fiscal stimulus effect whilst keeping the budget balanced. Use a multiplier diagram to show how this can be done. What is the affect of balanced budget stimulus on consumer income? Consumer spending? Why is it a good idea to use balanced budget fiscal stimulus? Let me know of any potential issues you think this balanced budget fiscal stimulus might cause. Do not spread misinformation and please do not use A.I. Take your time and thank you!!! Please Read Robert Shiller's Debt-Friendly Stimulus to answer the questions.

Reference no: EM133713127

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