Answered: D4. Discuss two reasons why…

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Economics

D4. Discuss two reasons why discretionary fiscal policy (expansionary & contractionary) may be ineffective?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter15: Fiscal Policy

Section: Chapter Questions

Problem 1SQP

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Concept explainers

Fiscal Policy and Money Market

Fiscal policy is one of the important tools that is used by the government to control inflation or aggregate demand in the economy. Under this policy, there are two rules which are used by the government, one is the expenditure of the government and the other is the taxation or income of the government which it collects from the public.

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D4. Discuss two reasons why discretionary fiscal policy (expansionary & contractionary) may be ineffective?

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