Describe some of the potential problems with using expansionary fiscal policy
What will be an ideal response?
Expansionary fiscal policy tends to cause inflation. It is difficult to accurately measure the size of the multiplier. It can cause different effects based on its financing. It is also politically cumbersome in terms of negotiating, enacting, and implementing the changes.
Economics
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The price paid to a resource in totally fixed supply is called
a. economic rent b. economic profit c. wages d. interest e. opportunity cost
Economics
Individuals' expectations of higher future income is a
A) rightward shifter of the AD curve. B) leftward shifter of the AD curve. C) reason for moving up along a given AD curve. D) reason for moving down along a given AD curve.
Economics