The textbook describes several fiscal policy options to stabilize the economy: Changes in Government Purchases, Business Taxes, Income Taxes, and Transfer Payments.

1) Determine if the USA currently needs economic stimulus or contraction. 2) Describe how each policy option could specifically be used to change the national economy.

3)Expansion or contraction is selected for the given country.

4) Each of the four policy optionswereidentified and explained well.

5) The explanations of how and why the policy would be effective were correct for each.