8. Improper fiscal policy can be destabilizing. Fiscal policy deceleration during a recession can both lengthen the

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8. Improper fiscal policy can be destabilizing. Fiscal policy deceleration during a recession can both lengthen the duration and heighten the severity of an economic slowdown. Similarly, fiscal acceleration is a potential source of inflation. The historical record reveals that fiscal policy has, at times, exerted a counterproductive influence.

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Economics Private And Public Choice

ISBN: 9780123110404

2nd Edition

Authors: James D Gwartney; Richard Stroup; A H Studenmund

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