Question: What are automatic stabilizers? Pres. Eisenhower was ready to act with fiscal policy, but before he could act automatic stabilizers worked to combat the recession.

  1. What are automatic stabilizers?
  2. Pres. Eisenhower was ready to act with fiscal policy, but before he could act automatic stabilizers worked to combat the recession. Explain.
  3. Pres. Kennedy had to decide between 2 expansionary fiscal policy options: 1) Heller’s fiscal policy option and 2) Galbraith’s fiscal policy option. What were the 2 fiscal policy options?
  4. Which fiscal policy option did Kennedy choose and why?
  5. When was Kennedy’s fiscal policy choice enacted and what happened to the economy?
  6. Which President continued in Kennedy’s Fiscal Policy legacy? This fiscal policy legacy is actually associated with this other President rather than Kennedy. Why? Why does this seem surprising to us?
  7. What is your opinion on how knowledgeable Kennedy was in regards to economics? Explain.

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