Business, 01.11.2019 03:31 explained1256

Briefly state and evaluate the problem of time lags in enacting and applying fiscal policy. explain the idea of a political business cycle. how might expectations of a near-term policy reversal weaken fiscal policy based on changes in tax rates? what is the crowding-out effect, and why might it be relevant to fiscal policy? in view of your answers, explain the following statement: "although fiscal policy clearly is useful in combating the extremes of severe recession and demand-pull inflation, it is impossible to use fiscal policy to fine-tune the economy to the fullemployment, noninflationary level of real gdp and keep the economy there indefinitely."

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Briefly state and evaluate the problem of time lags in enacting and applying fiscal policy. explain...

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