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26 Jun 2019
For various reasons, fiscal policy changes automatically when output and employment fluctuate.
a. explain why tax revenue changes when the economy goes into a recession.
b. explain why government spending changes when the economy goes into a recession.
c. if the government were to operate under a strict balanced-budget rule, what would it have to do in a recession? Would that make the recession more or less severe?
For various reasons, fiscal policy changes automatically when output and employment fluctuate.
a. explain why tax revenue changes when the economy goes into a recession.
b. explain why government spending changes when the economy goes into a recession.
c. if the government were to operate under a strict balanced-budget rule, what would it have to do in a recession? Would that make the recession more or less severe?
3
answers
2
watching
1,714
views
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Jarrod RobelLv2
27 Jun 2019