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Many income-transfer programs have been increasingly used among governments, since the Covid-19. Several economists concern that the policy may not stimulate the private consumption, despite
Many income-transfer programs have been increasingly used among governments, since the Covid-19. Several economists concern that the policy may not stimulate the private consumption, despite that those policies could be viewed as a government subsidy, representing a temporary boost to household income. Analyze the effect of the general equilibrium impact of the subsidy or income-transfer program on macroeconomic variables. Graphically illustrate. When do you think that the policy could stimulate the private consumption? And, when do you think that the policy could not stimulate the private consumption
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