8. Explain the difference between active discretionary fiscal policy advocated by mainstream economists and passive fiscal policy
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8. Explain the difference between “active” discretionary fiscal policy advocated by mainstream economists and “passive”
fiscal policy advocated by new classical economists. Explain:
“The problem with a balanced-budget amendment is that it would, in a sense, require active fiscal policy—but in the wrong direction—as the economy slides into recession.”
LO19.3
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Related Book For
Macroeconomics
ISBN: 9781259915673
21st Edition
Authors: Campbell McConnell, Stanley Brue , Sean Flynn
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