8. Explain the difference between active discretionary fiscal policy advocated by mainstream economists and passive fiscal policy

Question:

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.”

LO39.3

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Economics

ISBN: 9781259723223

21st Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

Question Posted: