One common argument against discretionary fiscal policy is: “Since the economy returns to equi- librium, we should not react to the fluctuations in the economy. If we do nothing, the economy will fix itself.” Critically evaluate this argument.
One common argument against discretionary fiscal policy is: “Since the economy returns to equi- librium, we should not react to the fluctuations in the economy. If we do nothing, the economy will fix itself.” Critically evaluate this argument.
Chapter15: Fiscal Policy
Section: Chapter Questions
Problem 8SQP
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One common argument against discretionary fiscal policy is: “Since the economy returns to equi- librium, we should not react to the fluctuations in the economy. If we do nothing, the economy will fix itself.” Critically evaluate this argument.
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