Question: 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

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.”

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