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UNIT V

Question 1

How do automatic stabilizers differ from discretionary fiscal policy tools?
 Question 2

Distinguish between crowding out and crowding in.
Question 3

In what ways can fiscal policy affect aggregate supply?
Question 4

What problems are associated with the U.S. federal budget process? What solutions have been offered to these problems?
Question 5

It is often said that we are passing our national debt on to our children and grandchildren. Is this true? Explain.

Your response should be at least 75 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

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