Question: 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.
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. 3. Explain how does monetary policy change households spending (consumption)? 4. Explain why and how the government imposes expansionary fiscal policy? Also explain how does the policy change the performance of the economy
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
