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book Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn cover

Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn

Edition 20ISBN: 978-0077660772
book Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn cover

Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn

Edition 20ISBN: 978-0077660772
Exercise 23
Briefly state and evaluate the problem of time lags in enacting and applying fiscal policy. Explain the idea of a political business cycle. How might expectations of a near-term policy reversal weaken fiscal policy based on changes in tax rates? What is the crowding-out effect, and why might it be relevant to fiscal policy? In view of your answers, explain the following statement: "Although fiscal policy clearly is useful in combating the extremes of severe recession and demand-pull inflation, it is impossible to use fiscal policy to fine-tune the economy to the full-employment, noninflationary level of real GDP and keep the economy there indefinitely." LO1
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The time lags involved in enacting and a...

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Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn
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