Macroeconomics 1st Edition by Campbell McConnell,Stanley Brue,Sean Flynn

Exercise 2

What are government's fiscal policy options for moving the economy out of a recession Speculate on which of these fiscal options might be favored by (a) a person who wants to preserve the size of government and (b) a person who thinks the public sector is too large. How does the "ratchet effect" affect anti-inflationary fiscal policy