Writing Assignment #4
Please answer and discuss the following questions:
1. In what circumstances would the contractionary fiscal policy be
recommended? How might you implement this type of policy—what
are the reasons that it might make sense to slow the economy
through government policy?
2. Explain why the government budget deficit increases during a
recession even without countercyclical fiscal policy.
3. Explain the differences among the three types of fiscal policy time
lags. What are automatic stabilizers? Which time lags do automatic
stabilizers affect?
Please do not write your answers more than 300 words.
4/13/2020 Writing Assignment #4
https://miamioh.instructure.com/courses/114787/assignments/1249922 2/2
Total Points: 20