What 2 specific discretionary fiscal policy actions (excluding combinations of actions) would be appropriate to heat up a recessionary economy? Note: do not answer ‘expansionary’ and ‘contractionary’, and only address the underlined scenario. What are the effects on the budget of these actions (do they create a deficit or do they create a surplus)? If you said a deficit is created in question #2: what are the two ways of funding the deficit and what are the implications/issues associated with each of the 2 ways? If you said a surplus is created in question #2: what are the options for dealing with the surplus and what are the implications/issues associated with the options for dealing with the surplus?
Get Answers For Free
Most questions answered within 1 hours.