Macroeconomics + Economy 2009 Update 18th Edition by Campbell McConnell, Sean Masaki Flynn,Stanley Brue

Exercise 12

What are government's fiscal policy options for ending severe demand-pull inflation Which of these fiscal policy options do you think might be favored by a person who wants to preserve the size of government A person who thinks the public sector is too large How does the 'ratchet effect' affect anti-inflationary policy.