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Q: How the economy is adjusted through fiscal policy ( No Answer,   1 Comment )
Question  
Subject: How the economy is adjusted through fiscal policy
Category: Business and Money
Asked by: kimber2005-ga
List Price: $15.00
Posted: 25 Oct 2005 18:49 PDT
Expires: 24 Nov 2005 17:49 PST
Question ID: 584936
How does the government use fiscal policy to adjust our economy? Can
you provide some examples as it is increased and as it is decreased?
Answer  
There is no answer at this time.

Comments  
Subject: Re: How the economy is adjusted through fiscal policy
From: irdogg-ga on 27 Oct 2005 07:57 PDT
 
How does the government use fiscal policy to adjust our economy? Can
you provide some examples as it is increased and as it is decreased?
 
Fiscal policy is the means in which the government uses to "adjust"
the economy, by spending money. If you are asking this question
because you are taking an economics class, you may want to mention the
name Keynes, if I remember correctly. It was Keynes, who believed that
when the economy is "recessed" ie. during the great depression, would
benefit greatly by economic activity, if the gov't would spend money
to hire people to dig holes and to fill them back up. Keynes believed
that the economy would be at the healthiest state when the government
can regulate the rate of expansion and contraction, rather than
leaving it up to the invisible hand. This is what we call Fiscal, and
Monetary (controlling interest rates) policy. Adam Smith would be the
antithesis.
Please correct me if I'm wrong after asking your professor.

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