The economy is in a recession, and the recessionary gap is large. a. Describe the discretionary and

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The economy is in a recession, and the recessionary gap is large.

a. Describe the discretionary and automatic fiscal policy actions that might occur.

b. Describe a discretionary fiscal stimulus package that could be used that would not bring an increase in the budget deficit.

c. Explain the risks of discretionary fiscal policy in this situation.

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Economics

ISBN: 9781292433639

14th Global Edition

Authors: Michael Parkin

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Question Posted: Jan 27, 2024 10:05 PM

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The economy is in a recession, and the recessionary gap is large. a. Describe the discretionary and

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a Discretionary and Automatic Fiscal Policy Actions discretionary fiscal policy In a recession with a large recessionary gap the government may use di...View the full answer

Economics

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